Igaming-centric operators like Rush Street Interactive posted strong first-quarter results, while online sports betting platforms like DraftKings and Flutter Entertainment beat projections but had to curb long-term revenue guidance.
Those were among the findings of Macquarie Equity Research analyst Chad Beynon, in a May 18 investor note.
Generally speaking, online operators reported 9% improvements in the first quarter, as well as 1% upgrades of guidance, Beynon found. These, he wrote, reflected “disciplined reinvestment and operating leverage rather than top-line outperformance.”
Except for Sportradar, all companies in Beynon’s coverage universe beat their first-quarter revenue guidance. For instance, Flutter predicted $611 million but delivered $631 million, while DraftKings came in at $168 million after projecting $153 million.
