By Katherine Hamilton

DraftKings lowered its outlook for the year as customer-friendly outcomes during the March Madness basketball tournament weighed down revenue.

The sports-betting operator on Thursday posted a loss of $33.9 million, or 7 cents a share, compared with a loss of $142.6 million, or 30 cents a share, a year earlier.

Stripping out certain one-time items, adjusted per-share earnings were 12 cents, ahead of the 7 cents forecast of analysts, according to FactSet.

Revenue rose 20% to $1.41 billion. Analysts surveyed by FactSet forecast revenue of $1.43 billion.

DraftKings said customer-friendly sport outcomes weighed on revenue. During March Madness, many of the teams that dominated the tournament were favored to win, meaning many customers won bets.

"If not for customer-friendly sport outcomes in March, we would be raising our fiscal year 2025 revenue and Adjusted EBITDA guidance," Chief Executive Jason Robins said.

DraftKings instead lowered its full-year outlook. It is now expecting revenue between $6.2 billion and $6.4 billion, down from previous guidance of $6.3 billion to $6.6 billion.

Flutter Entertainment, which owns rival FanDuel, on Thursday missed estimates for sales and profit. The company raised its outlook for the year based on improving foreign-exchange rates and expected benefits from mergers and acquisitions.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

May 08, 2025 16:48 ET (20:48 GMT)

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