FuboTV added subscribers in the third quarter, but its losses continue to mount.
Net losses for the virtual multichannel video programming distributor (vMVPD) widened to $152.6 million, or 82 cents a share, from $105.8 million, or 74 cents, a year ago.
The loss includes a $35.5 million charge resulting from the company’s decision to get out of the sports-betting business.
“Our decision to close the Fubo Gaming business and cease operation of our owned-and-operated Fubo Sportsbook was made in support of our profitability goals,” the company said in its shareholder letter. “But, as we continue to focus on data and interactivity to differentiate our virtual MVPD, we still believe the integration of gaming and live sports streaming is powerful. As a result, we are exploring ways to optimize our user base in the gaming space without investing our own funds.
Revenues grew 43% to $224.8 million. North American revenue was up 40%.
Fubo ended the quarter with a record 1.231 million subscribers and subscription revenue rose to $201.9 million from $138.1 million.
The company said it expected to have between 1.355 million and $1.375 million North American subscribers by the end of the fourth quarter. Revenue is expected to be in the $949.7 million to $954.7 million range, up about 50%.
It also sees having 355,00 to 365,00 subscribers in the rest of the world.
Like other companies in the streaming business, FuboTV said it was looking less to grow subscribers and more at monetization. FuboTV stock, which had a 52-week high of $35.10 a share, was trading at $3.29 a share on Friday morning, down almost 3%.
“Our third quarter was marked by meaningful advancements against our long-term plan of continued growth with improved profitability along the way,” FuboTV co-founder and CEO David Gandler said.
“As our premium offering continues to drive an ever greater number of consumers to our platform, our differentiated product experience and broad content portfolio keep them engaged — with this quarter representing an all-time low for subscriber churn,” Gandler said. “We are more bullish than ever on our model as consumers gravitate towards aggregated streaming platforms that offer popular content presented to them through a custom and personalized experience.”
North American ad revenue increased 21% to $22.5.
The company said it expected to see its ad sales continue to grow.
“As we announced at the outset of the year, our focus has been on investing in our advertising team, technology and infrastructure,” Fubo said in its letter to investors. “These investments are beginning to pay off. We expect to see this continued strength into the fourth quarter, with increased demand heading into the seasonally strong holiday period augmented by a competitive mid-term election cycle.” ■
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Jon has been business editor of Broadcasting+Cable since 2010. He focuses on revenue-generating activities, including advertising and distribution, as well as executive intrigue and merger and acquisition activity. Just about any story is fair game, if a dollar sign can make its way into the article. Before B+C, Jon covered the industry for TVWeek, Cable World, Electronic Media, Advertising Age and The New York Post. A native New Yorker, Jon is hiding in plain sight in the suburbs of Chicago.