Streaming pay-TV provider FuboTV reported second-quarter results far better than Wall Street analysts expected, showing a gain of 91,000 subscribers compared with the year-ago quarter.<\/p>\n
Given the widespread lockdowns and closing of movie theaters and other out-of-home options in the 2020 quarter, when Covid-19 lifted most streaming players, the rise in subscribers was noteworthy. FuboTV, which launched as a sports-focused offering in 2015 but has since added general entertainment, now has 682,000 total subscribers. Analysts had expected the company to add just 12,000 subscribers.<\/p>\n
Total revenue nearly tripled to a record $130.9 million and adjusted losses of 38 cents a share came in more than a dime lower than forecasts. Advertising revenue leaped 281% to $16.5 million.<\/p>\n
FuboTV went public last fall and its stock has generally been volatile, though it has more than doubled since the IPO. Investors hailed the quarterly results, sending shares up 10.5% in after-hours trading, to $31.65.<\/p>\n
Some media and entertainment entities blamed softer second-quarter results in some areas on the reopening of the economy as Covid restrictions ease. Asked during a videoconference with analysts why FuboTV was able to show higher engagement and add subscribers as non-screen-related options proliferated for customers, co-founder and CEO David Gandler credited improvements in the Fubo product. “We believe engagement will continue to improve over time,” he said.<\/p>\n
In 2020, he added, Fubo averaged 7.2 hours per subscriber per day, during a time when few people were going anywhere but the grocery store due to Covid. In 2021 to date, by comparison, the average is about 7 hours. Steady increases in penetration for smart-TVs and connected-TV devices are another tailwind, with about 94% of Fubo’s subscriber base coming from those sources.<\/p>\n
The company now estimates it will end 2021 with 915,000 subscribers, which would be a 67% improvement over 2020 levels. It has outlined ambitions to integrate sports betting into the pay-TV platform, reducing friction for avid sports fans inclined to wager as they stream live sports. A demonstration video played during a videoconference with analysts.<\/p>\n
Rivals like YouTube TV, Hulu + Live TV and Dish Network’s Sling all have more than twice the number of subscribers as Fubo, but Fubo has focused on over-delivering on 4K and certain sports. It parted ways with WarnerMedia last year, though, which stranded NBA fans over spring and summer. Like many internet pay-TV operators, it has reached an impasse with Sinclair’s Bally regional sports networks. As programming costs continue to rise, it gets harder to keep a lid on costs for customers.<\/p>\n
Despite those challenging economics, Gandler said FuboTV is positioned to take advantage of larger trends in streaming. “There will be a major shift back to aggregation and bundling,” he predicted, “as the proliferation of SVOD services becomes increasingly burdensome and costly.”<\/p>\n