According to MGT Capital Investments second quarter financial results, DraftDay is now the #3 daily fantasy sports site.
This ranking is based on measuring fantasy player activity and size of games offered on the website.
MGT Capital Investments acquired DraftDay earlier this year for a reported $600,000 in cash along with 100,000 shares of common stock. The acquisition help contribute to a second quarter ending June 30, 2014 with at total revenue of $320,000 compared to $67,000 in same quarter last year. The company still took an operating loss of $1.5 million in the second quarter. However, that was better than the $3.1 million loss in the same quarter the year before.
The financial reports also highlights that during the quarter, MGT Sports launched FantasySports.Live.com that provides fantasy news, content, and commentary targeting the daily fantasy sports market.
Commentary:
With #2 DraftKings' acquisition of #3 DraftStreet, it appears that DraftDay is now the new #3 daily fantasy site. Although the financial report did not break down DraftDays specific performance of last quarter, it does not bode well for the site to be attached to a company that is challenged to turn a profit in the fantasy sports industry. The daily fantasy market has seen the entry of a very powerful compeitor with USA Today's new daily fantasy site Fantasy Score. It will be interesting to see how long DraftDay will remain in the #3 spot.
