Stocks Tracker: US-listed operators’ 2022 performance in review
In the final instalment of a three-part series, EGR looks at some of the industry’s largest public firms and their annual performance in another tumultuous 12 months for the sector
DraftKings
2022 opening: $27.77
2022 decrease: -61.03%
Market cap: $5.31bn
DraftKings was the darling of the sports betting stock market boom in 2020 after its shares soared well above $70 a piece and its market cap hit $32bn. Fast forward two years, throw in a sticky path to profitability and a darkening macroeconomic environment, and the Boston-headquartered firm’s stock market performance has been brought back down to Earth with vigour.
Still one of the top three operators in the US alongside FanDuel and BetMGM, DraftKings returned a 38% year-on-year (YoY) jump in revenue for the first nine months of the year to $1.39bn. The operator’s sportsbook is live in 19 states, meaning it is available to almost 40% of the US population. A focus on igaming with the regulatory shift on the horizon in a handful of states could also put the firm in good stead.
However, investors have balked at the sustained losses, with adjusted Q3 EBITDA landing at -$264.2m. These losses are shrinking YoY, but perhaps not at the rate those who jumped on the bandwagon in 2020 were expecting.
Another blow saw DraftKings, along with a host of other US operators, knocked back in its hopes to bring online sports betting to California.
Proposition 27 was firmly rejected by voters in the US Mid-terms after DraftKings and other US operators had clubbed together almost $170m to contribute to the Yes to Proposition campaign.
DraftKings will be looking to bring the issue back to the table in 2024 at the earliest.
Source: Yahoo
Bally’s Corporation
2022 opening: $37.79
2022 decrease: -45.94%
Market cap: $954.2m
The £2bn merger with Gamesys Group in October 2021 pointed to a transformative future for Bally’s, but this may well not be any time soon. The addition of Gamesys’ online know-how and skill was planned to catalyse Bally’s digital arm in the US, but the firm is still in “ramp-up mode” according to CEO Lee Fenton.
In fact, Bally’s Interactive is anticipating a ~$60m adjusted EBITDA loss for 2022, with the hopes that as igaming regulation in the US shifts, it will be well placed to capitalise. States such as Indiana and Illinois are expected to go green in terms of online casino, which would help take the pressure off of Bally’s dominant UK and Japanese igaming arms.
Worldwide digital revenue for H1 2022 was £375.1m, down 4.1% YoY in constancy currency, with UK and Asia delivering revenue of £220m and €158.9m, respectively.
One of the smaller downturns on the stock market for the industry, Bally’s is bolstered by its legacy land-based casino operations and will be hoping it can replicate its fortunes in bricks and mortar in the digital arena in due course.
Source: Google
Super Group
2022 opening: $8.25
2022 decrease: -64.61%
Market cap: $1.45bn
It was a landmark year for Super Group after the firm went public on the New York Stock Exchange in a SPAC merger in January and leaped into the top 10 of the EGR Power 50 for the first time.
The parent company of Betway and multi-brand online casino Spin has seen its share price slump since its peak of around $11 in April as the market downturned in H2. A strong net gaming revenue (NGR) of over €630m for H1 2022 helped the firm jump nine places in the Power 50 to finish in sixth place.
Super Group will be looking to expand its presence in North America after the region returned 47% of NGR in Q2, and with the acquisition of Digital Gaming Corporation (DGC) is expected to close shortly, growth is on the agenda.
DGC has secured market access in up to 12 states already, and with Betway’s exerted marketing push, the US should bear fruit in 2023.
In September, Super Group snapped up a majority stake in profitable UK-focused online casino business Jumpman Gaming, while post-Q3 the firm pointed to record levels of average active players at around 3.2 million.
Source: Google
All data accurate as of market close on 20 December