DraftDay revenues reach $250,000 in Q2

Daily fantasy sports site sees revenues increase 15% sequentially but fall year-on-year

Daily fantasy sports operator DraftDay generated revenues of $249,000 in the second quarter of the year, according the latest financial figures released by parent company MGT Capital Investments. [private]

The latest numbers represent a 15% sequential increase on the $217,000 recorded in Q1, but are down 12% year-on-year which MGT said was due to reducing overlay in guaranteed contests.

As a result, gross margin from gaming operations stood at $153,000 or 61% of revenue, up by a third compared with the $116,000 or 41% of revenue recorded during Q2 last year.

MGT posted an improved operating loss of $855,000 during the three-month period compared with $1.5m in Q2 2014 and $1.3m in Q1 this year.

The numbers are the first to be revealed after MGT agreed to sell DraftDay and its B2B network MGT Sports to a Sportech-managed investment fund for $7m back in June.

MGT acquired DraftDay in April last year for $600,000 cash and around 100,000 shares of common stock.