Money-losing, sports-oriented streaming service FuboTV said it is closing down its sportsbook and exiting the online wagering business.
At one time, the virtual MVPD saw gambling as a way it could generate additional revenue and profits from its sports-loving subscribers.
“Following our previously announced strategic review, we have concluded that continuing with Fubo Gaming and Fubo Sportsbook in this challenging macroeconomic environment would impact our ability to reach our longer-term profitability goals,” FuboTV co-founder and CEO David Gandler said. “Therefore, we have made the difficult decision to exit the online sports wagering business effective immediately.”
In an SEC filing FuboTV said that “it expects to incur certain immaterial charges in connection with these matters, primarily related to severance and other employee-related costs; however, the Company may also incur further charges, the amount and timing of which cannot be estimated at this time.”
The company said it also expects to incur certain non-cash impairment charges of intangible assets and other noncurrent assets of approximately $70 million. It said those charges are primarily related to market-access agreements. It may also incur certain cash charges for the termination of certain contracts.
Fubo also released preliminary third-quarter results and said, despite increasing revenue and subscribers in the third quarter, Fubo will post an adjusted EBITDA loss of about $100 million, up from $81.3 million a year ago and from $79.1 million in the second quarter.
FuboTV said its North American revenue is expected to be $210 million in the quarter, up 34% from a year ago. Rest-of-world revenue is expected to be at least $5.5 million.
U.S. subscribers are expected to exceed 1.22 million, up 27% year-over-year. Rest-of-world subscribers are expected to be about 350,000.
The revenue and subscriber totals exceed the company's previous guidance.
Fubo stock, which had a 52-week high of $35.10, closed at $4.05 Monday, up 6.3%. It rose another 9% in after-hours trading. ■
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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.