FuboTV said it expects higher subscriber, revenue growth and ad sales in the third quarter than previously forecast, driven by the start of the NFL season.
The company, which lost $100 million in the second quarter, did not forecast net earnings. But it did say that its shares were approved for listing on the New York Stock Exchange, conditioned successfully pricing its stock offering.
The company also said it added $52 million in equity funding from institutional and private investors.
“We believe consumers will, particularly in this current economic climate, continue to choose streaming over traditional pay television because of this more personalized, premium viewing experience that is also less expensive,” said CEO David Gandler in a letter to shareholders. “Furthermore, we believe fuboTV’s sports package is unparalleled in the marketplace.”
Fubo said it expected third quarter paid subscribers to reach 370,000 to 380,000, up 28%. Previously it had forecast that it would have 340,000 to 350,000 subscribers, up 20%.
Revenue is forecast to rise to $50 million to $54 million, an increase of between 27% and 38% from a year ago. In addition to growth from subscriber fees, Fubo said it expected ad sales to double from a year ago, with advertising revenue per unit between $6 and $7.
FuboTV expects its growth to continue for the rest of the year, with fourth quarter revenue of $68 million to $75 million, a 53% to 68% increase. It forecasts having 410,000 to 420,000 subscribers, up 30% to 33%.
For all of 2020, the company expects revenues to be up 50% to between $220 million and $231 million. For 2021, it sees revenue jumping 82% to $400 million to $420 million.
“The current quarter has been very strong for fuboTV with double digit revenue and subscription growth year-over-year as well as improvement in retention - all achieved during the ongoing pandemic,” said CEO David Gandler in a letter to shareholders.
“With the leading live sports package in the market, we are encouraged that the major sports leagues have found ways to navigate the pandemic. The NFL has a great example with Major League Baseball on how to handle COVID-19, and we’re excited for the season,” he said. “The start of the NFL season and the expectation of a heavy fall sports calendar is driving engagement, ad revenue and higher CPMs, giving us additional confidence to forecast a strong third quarter for fuboTV. Looking ahead, we are focused on driving revenue growth by increasing subscription and ad sales and improving engagement.”
FuboTV merged with FaceBank Group in April and has been doing business as fuboTV.
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