FuboTV Ups Q3 Paid Subs, Exiting Online Sports Wagering Business

Online sports-themed TV streaming platform FuboTV announced preliminary third-quarter (ended Sept. 30) fiscal results. The company is expected to close the quarter with North American revenue of at least $210 million, a 34% increase from $156.7 million in the previous-year period. Rest of World (ROW) revenue outside North America, which includes French online TV platform Molotov, topped a projected $5.5 million.

Paid North American subscribers are expected to exceed 1.22 million, an increase of more than 27% from 960,000 last year. Paid ROW subs are expected to reach about 350,000. Prior third quarter paid subscriber guidance was 1.13 million-1.15 million for North America and 340,000-360,000 for ROW.

The company expects to post a negative $100 million of pre-tax earnings in the quarter. Cash and cash equivalents at the end of the quarter are expected to be at least $300 million.

Separately, FuboTV announced it is closing its Fubo Gaming subsidiary and cease operation of its owned-and-operated Fubo Sportsbook, effective immediately.

“We’re pleased with this expected performance, and our progress toward achieving our positive cash flow target in 2025,” co-founder/CEO David Gandler said in a statement. “

Gandler said that continuing with Fubo Gaming and Fubo Sportsbook in the challenging macroeconomic environment would impact the company’s ability to reach longer-term profitability goals.

“Therefore, we have made the difficult decision to exit the online sports wagering business,” he said. “We look forward to providing more color, as well as discussing our full third-quarter 2022 results and full-year outlook, on our Nov. 4 earnings call.”

FuboTV Puts Online Sports Betting Business Under ‘Strategic Review’

FuboTV, the sports-themed online television service, is putting the brakes on its aggressive plans to enter online sports betting alone. The platform in November 2021 launched a branded Sportsbook, the first online TV streaming service app in the U.S.

Then came fiscal reality. Subscriber churn, which has seen FuboTV’s paid sub count fall below one million from 1.1 million subs at the end of 2021, coincided with reported scant consumer interest in the betting platform in Iowa and Arizona — two states that have approved use of the app.

“In light of a rapidly-evolving macro-economic environment, we believe it is important to be even more capital efficient than originally scoped,” co-founder/CEO David Gandler and CFO John Janedis wrote in the Aug. 4 shareholder letter. “We are taking steps to de-risk our business and have made the decision to no longer go down the wagering path independently.”

At the same time, FuboTV’s North American (U.S. and Canada) streaming business delivered double-digit year-over-year growth in total revenue (up 65% to $216.1 million), ad revenue (up 32% to $21.7 million) and paid subscribers (up 41% to 946,735) during the second quarter (ended June 30), compared with the previous-year period.

“We continue to believe that an integrated wagering platform, offering both live video and a sportsbook, will result in the best viewing and gaming experience for customers,” Gandler and Janedis wrote. “However, as we have evaluated how best to scale these capabilities in today’s market, we have concluded that we will no longer pursue this opportunity on our own.”

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FuboTV Ends 2020 With 548,000 Subscribers, $570.5 Million Loss

Sports-themed online TV service FuboTV reported a base of 548,000 subscribers for the fourth-quarter and fiscal-year ended Dec. 31, 2020. That was up 73% from 316,000 subs during the previous-year period. The platform gained 92,800 subs in the quarter.

Revenue in the quarter topped $105.1 million, up 98% from the previous-year period. Subscription revenue increased 91% to $91.4 million. while advertising revenue increased 157% to $13.1 million.

At the same time, FuboTV continues to hemorrhage money, losing $570.5 million in the fiscal year, compared with a loss of $34.9 million in the previous-year period. Revenue topped $217.7 million compared to revenue of $4.2 million in 2019.

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Much of the loss was due to content acquisition infrastructure costs, including purchase of online sports wagering software. FuboTV plans to launch online sports gambling in the fourth quarter.

“Our goal for 2021 and beyond is to develop fuboTV into a new kind of media company that combines both innovative streaming video and sports wagering,” Edgar Bronfman Jr., executive chairman of FuboTV, said in a statement.

The platform plans to launch free-to-play predictive games in the third quarter (first to fuboTV subs and later to all consumers) and an online sportsbook in the fourth quarter.

“Ultimately, we intend to integrate fubo Sportsbook into fuboTV’s live TV streaming platform for a seamless viewing and wagering experience,” co-founder/CEO David Gandler and Bronfman wrote in the shareholder letter.

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.”