Sports-oriented streaming service fuboTV reported a third-quarter loss as it grew subscribers by 58%, and said it plans to move into the online sports betting business.
fuboTV also said it has made deals to launch channels with Epix and Starz.
The company's third quarter net loss was $274.1 million, or $6.20 a share, compared to a $7.166 million, or 29 cents a share, a year ago.
The losses include a $236.7 million non-cash impairment charge for the legacy FaceBank business. FaceBank acquired fuboTV in March.
Revenue rose 47% to $61.2 million.
fuboTV said it saw an opportunity to combine a sports wagering service with its live sports streaming packages. “Our goal with wagering is to develop a new revenue stream for fuboTV, and one which we believe will be an important contributor to our business,” the company said in a letter to shareholders.
In the shareholder letter, the company said it expects the new premium Epiix and Starz channels to launch before the end of the year.
fuboTV said third quarter subscription revenue increased 64% to $53.4 million as paid subscribers at the end of the quarter rose to 455,000, up 58% from a year ago.
Advertising revenue increased 153% to $7.5 million.
Average revenue per user per month was $67.70, up 14% and total content hours streamed by fuboTV users increased 83% to 133 million hours.
“Q3 was the strongest quarter in fuboTV’s history, exceeding targets in all of our key metrics: subscription revenue grew 64% year-over-year, ad revenue grew 153% year-over-year and we ended the quarter with an all-time high of 455,000 paid subscribers,” said David Gandler, co-founder and CEO, fuboTV.
“A heavy sports calendar, busy news cycle and Hollywood’s fall entertainment season delivered many viewing options for consumers," Gandler said. "We continued to grow fuboTV’s premium, personal viewing experience with the launch of new product features and new programming including Disney Media Networks (ABC, ESPN, many more), MLB Network, NBC News Now and more.”
The company raised some of its financial guidance. Fourth-quarter revenues are expected to be between $80 million and $85 million, a 51% to 60% increase year-over-year. fuboTV also expects to end the fourth quarter with 500,000-510,000 paid subscribers, an increase of 58% to 62% year-over-year.
Full year 2020 revenue is expected to be $244-248 million, an increase of over 65% year-over-year. Full year 2021 revenue is expected to be $415-435 million, an increase of over 70% year-over-year.
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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.