Monthly Archives: May 2020

DraftKings stock soars despite Q1 earnings belly-flop

US sports betting/daily fantasy/online casino operator DraftKings saw its stock soar even higher on Friday despite posting a somewhat dire Q1 earnings report.

On Friday, DraftKings released its first earnings report following its debut on the Nasdaq exchange last month. The release helpfully offers evaluations on both ‘Old DraftKings’ and SBTech, the European-based betting tech provider that DraftKings absorbed as part of the ‘business combination agreement’ it struck last December.

Old DraftKings generated revenue of $88.5m in the three months ending March 31, up 30% from the same period last year. The company failed to offer insights into how its revenue was split between daily fantasy sports, ‘real’ sports betting and its online casino operations in New Jersey.

Costs were up across the board, particularly sales & marketing costs as the company fought for sports betting customers in states where such activity is legal. Those costs resulted in an earnings loss of nearly $49.5m and a net loss of nearly $68.7m, both of which were more than double the sums DraftKings lost in Q1 2019.

Suncity’s Vietnam casino project gets license valid through 2080

Vietnam’s casino market officially has another entrant after the government issued a license to an affiliate of junket operator Suncity Group.

On Friday, the Hong Kong-listed Suncity Group Holdings – which shares ownership with the Suncity Group junket business – announced that its Hoiana casino resort joint venture in Quang Nam province had received its ‘casino operating license’ from Vietnam’s Ministry of Finance.

Suncity holds a 34% stake in the $4b Hoiana joint venture, with relatively equal shares held by real estate investment and development firm VinaCapital Group and Gold Yield Enterprises, a subsidiary of Hong Kong conglomerate Chow Tai Fook Enterprises.

Suncity says the Hoiana license is good through December 10, 2080, by which time everyone currently involved with the project – and likely some of their children – will be dead and buried. (Sorry … too much perspective?)