Browse articles by topic

GNOG records H1 revenue growth ahead of $1.56bn DraftKings deal


Golden Nugget Online Gaming (GNOG) has recorded revenue of $58.4m (£42.3m/€49.6m) for the first half of 2021, representing a 38.7% increase on the same period last year, as it prepares for an acquisition by DraftKings.

$51.1m of the revenue total was derived from gaming – a 38.1% increase from 2020 – while $7.3m came from other sources.

However, GNOG’s expenses also increased significantly from 2020, rising 156.1% to $71.2m. Revenue costs were $26.9m, advertising and promotion amounted to $30.9m, and administrative costs totaled $13.4m.

As a result, GNOG recorded an operating loss of $12.8m for the first half of the year. However, a $90.0m gain on the change of values of warrants related to GNOG’s  SPAC merger helped to make up for this

Because of this, half-year net income came to $68.1m – up 1483.7% from 2020.

Adjusted earnings before interest, taxation, depreciation and amortization were down from $14.4m in 2020 to a $7.4m loss, which the operator attributed to growth investments in new markets such as Michigan.

In terms of revenue for the second quarter, GNOG experienced a 27.8% increase, posting figures of $31.7m. However, the business made a net loss of $1.6m for the quarter.

GNOG chairman and CEO Tilman Fertitta said: “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. Golden Nugget Online Gaming continues to successfully execute on our national expansion, while concurrently strengthening our capabilities and product offerings with key partnerships.

“We are increasingly encouraged by our results and look forward to executing on the significant and growing market opportunity available to us.”

Earlier this month, GNOG agreed a deal to be acquired by sportsbook giants DraftKings in a deal worth $1.56bn.

DraftKings will pay 0.365 newly issued shares for each common share of Golden Nugget Online Gaming.

Subject to regulatory approvals, the deal is expected to close in the first quarter of 2022.

In addition to dealings in Michigan, 2021 also saw GNOG secure partnerships within Nascar and golf’s Rocket Mortgage Classic.