FuboTV Reports $274 Million Loss in First-Ever Quarterly Report; Eyes Entering Sports Betting Market

FuboTV, the live-sports themed online TV service, Nov. 10 released its first fiscal-quarter report (ended Sept. 30) after launching an Initial Public Offering in October. The service reported a net loss of $274 million on revenue of $61.2 million. That compared with a loss of $6.9 million on revenue of $5.8 million during the previous-year period when it was a private company.

New York-based FuboTV ended the quarter with 455,000 subscribers, up 58% from 288,000 in the previous-year period. The service offers monthly plans from $55, and includes games from the NFL, NHL and NBA, in addition to live and on-demand channels CBS, Fox, NBC, Cartoon Network, CNN, Discovery, Food Network, TLC, TNT and TV Land, among others.

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Total content hours streamed by subscribers (paid and free trial) in the quarter increased 83% year-over-year to 133.3 million hours, from 72.8 million hours. Monthly active users (MAUs) watched 121 hours per month on average in the quarter, an increase of 20% year-over-year from 100.8 million.

“A heavy sports calendar, busy news cycle and Hollywood’s fall entertainment season delivered many viewing options for consumers,” co-founder/CEO David Gandler said in a statement.

Executive chairman Edgar Bronfman Jr. contends fuboTV sits at the intersection of three trends: the secular decline of traditional TV viewership, the shift of TV ad dollars to connected TVs and online sports wagering — the latter a projected $155 billion market by 2024.

“As our cable TV replacement product is sports-focused, we believe a significant portion of our subscribers would be interested in online wagering, creating a unique opportunity to drive higher subscriber engagement and open up additional revenue opportunities,” Gandler and Bronfman Jr. wrote in the shareholder letter. “Simply put, we expect wagering will lead to more viewing, and this increased engagement will lead to higher ad monetization, better subscriber retention and a reduction in subscriber acquisition costs.”

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