As Golden Nugget Online Gaming awaits approval of a definitive agreement to be acquired by DraftKings, shareholders might appreciate the gaming operator’s second quarter results.
Issued Monday, the quarterly report stated revenue of $31.7 million, a 27.7% increase over the $24.8 million generated in 2020’s second quarter. Revenue for the first half of 2021 also increased year over year, from $42.3 million in 2020 to $58.4 million, a jump of 38.6%.
GNOG’s net losses for the second quarter totaled $1.6 million compared to net income of $0.1 million in the same period in 2020. But net income for the first half of 2021 was $68.1 million, compared to net income of $4.3 million in H1 2020.
Active first time depositors (AFTD) also grew by 110% in the quarter compared to the same period in 2020, and 12-month active depositors grew 108%. For the first half of 2021, AFTD grew 313% compared to 2020’s first six months.
“We are proud to have achieved another solid quarter driven by the strength of our new customer growth both in our established and newer markets,” said GNOG CEO and Chairman Tilman Fertitta in a statement. “Golden Nugget Online Gaming continues to successfully execute on our national expansion, while concurrently strengthening our capabilities and product offerings with key partnerships.”
In addition to brokering the deal with DraftKings, GNOG has also been actively working to add to its portfolio. On Monday, the gaming operator also announced it signed a partnership deal with Boom Entertainment, a provider of online gaming and sports products in the U.S. The deal includes a minority equity investment, preferred and exclusive content, game development, and market access rights in Ohio.
GNOG also launched Liver Dealer on July 22 in Michigan and made available in the state 103 new online games from nine different suppliers. In New Jersey, GNOG completed the expansion of its Live Dealer Studio, which increases the number of available tables from 18 t0 33.
“In Michigan, we grew market share and are very pleased with the trajectory of growth in the early quarters of our operations,” Fertitta said. “We expect similar trajectories for our planned launches in Virginia, West Virginia and Pennsylvania later this year.”
Fertitta added the partnership with GNOG will allow it to add to its content offerings.
The definitive agreement with DraftKings, an all-stock transaction with an implied equity value of approximately $1.56 billion, is subject to approval by GNOG shareholders and regulatory agencies. The transaction is expected to close in the first quarter of 2022.
