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DraftKings reveals senior management changes as the CFO steps down

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DraftKings announced several changes in its senior management, including Jason Park’s departure as Chief Financial Officer to become the company’s first ever chief transformation officer.

Park will assume the new role of Park on May 1. He joined the company in June 2019 after serving as DraftKings’ CFO for nearly five years.

Park’s new position will see him leading initiatives to implement technologies in order to increase operating efficiency. Park will oversee integration of Jackpocket’s proposed acquisition for $750m, (PS590m/EUR690m), announced last month.

Jason Robins, co-founder of DraftKings and its CEO said: “I asked Park to assume a new position at DraftKings in order to identify and seize large efficiency opportunities which I believe will result in significant additional profitability within the next few years.”

Jason’s skill set will help us improve our operations. It is based on the accomplishments he has made in his last five years of being CFO, and over 11 years working as an operating partner for private equity. I am confident that he’ll unlock the potential of Jackpocket’s acquisition after its closure to further strengthen DraftKings in online gaming.

DraftKings announces Ellingson to be the new Chief Financial Officer

Alan Ellingson will replace Park, who is currently Senior Vice-President for Finance and Analytics at DraftKings. From 1 May, he becomes the CFO.

DraftKings announced that Ellingson would be responsible for continuing to increase shareholder value through driving the company towards its financial goals.

Ellingson will join DraftKings as Vice-President, Financial Planning and Analysis in February 2020. In January of last year, he was promoted to senior vice president of finance.

Ellingson has worked at Iron Mountain in various roles before joining DraftKings.

Robins stated, “I’m very happy to promote Alan as CFO.” He will lead the business on a very specific path we’ve laid out. Alan has worked at DraftKings more than 4 years. “He has a wealth of experience in our finance and analytical teams, and, more importantly, he understands deeply our core values and our focus on maximising shareholders value.”

DraftKings reveals growth prospects for 2024

DraftKings announced its results for 2023 on the day Jackpocket was proposed to be acquired.

In the last year, revenues increased by 63% and reached $3.7bn. The loss on operations dropped from $1.50bn down to $789.2m. The negative EBITDA for the year was also $151.0m compared with $721.8m in previous years.

DraftKings ended 2023 with a bang, as revenue in the fourth quarter grew by 44% and reached $1.2bn. The loss from operations in Q4 of 2022 was $232.2m, whereas it was only $43.8m. The adjusted EBITDA went from negative $49.9m up to positive 151.0m.

DraftKings has published updated forecasts based on these figures for the current fiscal year.

DraftKings expects its first year with a positive EBITDA adjusted to be in 2024. Earnings could reach $510m. The previous stated amount was $450m.

In 2024 the revenue is expected to increase from $4.50bn – $4.80bn.

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