DraftKings CFO Alan Ellingson has said the business has only “scratched the surface” of its total capabilities as an “entertainment giant” as he warned colleagues over potential complacency.
Ellingson featured in Bloomberg’s Chief Future Officer TV segment last week in a 23-minute episode that explored DraftKings’ rise and future plans, with company CEO and co-founder Jason Robins also taking part.
The finance boss was named as DraftKings CFO in March as part of a reshuffle that saw long-term finance chief Jason Park moved into a new role as chief transformation officer, to oversee the integration of Jackpocket.
Ellingson had joined DraftKings as VP of financial planning in February 2020 before stepping up to become SVP of finance in February 2022.
Speaking to Bloomberg, the CFO laid out his bullish expectations for DraftKings, with the company this year having expanded into the lottery courier app space with Jackpocket and acquiring Sports IQ, Simplebet and Dijon Systems.
He said: “I think we’ve only begun to scratch the surface of DraftKings as an entertainment giant. We have opportunity to expand our revenue, our product lines, to create a single destination for entertainment.
“Our singular focus on growing the company and expanding outwards is there. We’re driven. We’re focused.
“I never want to see us complacent as a company. I never want us to think that we’ve succeeded. Entertainment is an evolution. It’s constantly changing, and we want to constantly change.”
The segment, led by Bloomberg TV anchor Dani Burger, also explored DraftKings’ appetite for international expansion outside of the US.
Ellingson said that the priority for DraftKings remained on its home market, with its UK DFS business having been pulled at the start of October.
He said: “Our one, two and three priority is to be successful in the US. That’s what we promised our shareholders as the investment thesis for DraftKings.
“As far as going internationally, the mentality is going to be the same as for anything. We’re going to look for the right opportunities. We’re going to look for the right use of capital.”
He added: “We’re going to have a very high bar for what those investments are because we have a lot of great opportunities at home that make a ton of sense.
“We are going to be comparing it against all the other capital allocation opportunities facing us. Again, with the US growing as much as it is, we really want to make sure we’re taking advantage.”
Speaking on DraftKings Q3 analyst call earlier this month, Robins made similar comments, as he claimed international expansion was not a must.
He said: “It’s more an opportunistic thing at this point, so it’s not to say that if the right opportunity came about, we wouldn’t pursue an international expansion strategy. But I don’t think we feel like it’s a need.”
The Boston-based operator’s Q3 earnings report noted revenue amounting to $1.1bn, up 39% year over year.
However, adjusted EBITDA fell from $153.4m in Q3 2023 to $58.5m as the business laid out slightly readjusted full-year 2024 guidance.
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