DraftKings' Bet on Going Public in a Pandemic Not Paying Off - Yet

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In its first quarterly earnings release as a public company, DraftKings  (DKNG) - Get Report posted a wider-than-expected loss on Friday, for obvious reasons: a lack of sports to bet on.

The Boston-based company posted a loss of $68.7 million, or 18 cents a share, vs. a loss of $29.5 million, or 8 cents a share, in the comparable year-ago quarter. Revenue rose to $88.5 million from $68 million.

Analysts polled by FactSet were expecting a loss of 15 cents a share on sales of $104.4 million. Losses from operations more than doubled to $66.1 million from $30.2 million.

The daily fantasy sports and sports betting company at the end of April combined with publicly traded special-purpose acquisition company Diamond Eagle Acquisitions and SBTech, with its shares rising 10% to $19.21 in its first day of trading.

However, a lack of live sporting events globally due to the coronavirus pandemic that has made betting on sporting events nearly impossible ate into the company’s profits, though the company did experience an uptick sales and users in the first quarter.

That hasn't stopped users from flocking to the company's site for other reasons, however, including new product offerings such as fantasy sports and betting on eNASCAR, Counter Strike, and Rocket League.

The company also has launched a series of pop culture free-to-play pools contests that cover topics from democratic debates to TV shows like 'Survivor', 'The Last Dance' and 'Top Chef.' It also recently partnered with MLB on their new MLB Dream Bracket game.

While quarterly revenue is down and losses are up, investors remain optimistic for as and when sports-betting ramps back up. Shares in DraftKings gained more than 10% on Friday after the earnings release.