DraftKings Posts Wider-Than-Expected Quarterly Loss. The Stock Slides.

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DraftKings
,
the online sports betting company, was falling in premarket trading Friday after reporting a third-quarter loss wider than analysts’ expectations.

DraftKings

(ticker: DKNG) posted a quarterly loss of $1.35 a share on revenue of $213 million.

Analysts expected DraftKings to report a third-quarter loss of 98 cents a share on revenue of $236.9 million.

The company said average revenue per monthly unique player was $47 in the third quarter, a 38% increase from the same period in 2020.

The company also boosted the midpoint of its revenue guidance for fiscal 2021.

DraftKings (ticker: DKNG) said it expects fiscal-year revenue of $1.24 billion to $1.28 billion, vs. previous guidance of $1.21 billion to $1.29 billion. Analysts have been calling for fiscal-year revenue of $1.29 billion.

For fiscal 2022, DraftKings said it expects revenue of $1.7 billion to $1.9 billion.

Rival

Penn National

reported Thursday that third-quarter earnings fell almost 40% from a year earlier, coming in well below analysts’ expectations. The company blamed Hurricane Ida for slowing momentum into the second half of August and into September.

Last last month, DraftKings dropped its plan to acquire British gambling giant Entain in a $22.5 billion deal.

DraftKings shares fell 3.51% to $43.11 in premarket trading.

Write to Joe Woelfel at joseph.woelfel@barrons.com