NEW YORK— fuboTV reported lower subscription levels and lower than expected revenues for its virtual streaming service for Q1 this week.
Subscriptions fell by 75,000 worldwide in the quarter ending March 31 and the company reported a loss of $140.8 million for Q1, compared with a loss of $70.2 million the same period a year ago.
When looked at year-over-year, however the outlook was positive, according the company. Total paid subscribers are up 81% YOY to 1,056,245 total and advertising revenue was also up 81% YOY to $22.8 million. Record revenues of $236.7 million in the U.S. and Canada represented an increase of 98% YOY.
fuboTV says it states its key metrics on a year-over-year basis given the "seasonality" of sports content.
The company also announced results for its Rest of World (France, Spain) streaming business for the first time, ending the quarter ahead of expectations with approximately 305,000 total paid subscribers and $5.5 million in total revenue.
Far smaller than its competitors, YouTube TV, Hulu and Sling in the vMVPD market, fuboTV offers a subscription package of more than 115 channels for $70. In March, it announced that it was dropping its “Starter” tier of 100 channels that cost $64.99 per month in favor of the “Pro” tier of 115+ channels. That price is in line with its competitors’ current offerings.
David Gandler, co-founder and CEO, fuboTV said that the company experienced “challenges” during its most recent quarter but that it sees future potential in more interactive content, personalization and gaming (online betting).
“In our first quarter, against a challenging macro environment, fuboTV achieved strong growth in subscribers and revenue, with North American subscriber growth of 81% year-over-year,” said Gandler. “In a less robust advertising market, however, we experienced some pressure on adjusted contribution margin due to slower ad sales growth than we had initially expected, with ad revenue up 81% year-over-year. Importantly, we strengthened fuboTV’s balance sheet, ending the quarter with over $456 million in cash. This increased financial flexibility is expected to take us through 2023, and we are targeting positive cash flow and Adjusted EBITDA (AEBITDA) in 2025, with a relatively modest cash requirement anticipated in 2024.”
“We are committed to a business which replaces the decades-old basic cable package by giving consumers increased and improved content, ‘anytime anywhere’ access and mobility, increased choice and flexibility, personalization and interactivity—including gaming,” said Edgar Bronfman Jr., executive chairman, fuboTV. “Wagering remains an important pillar in our path to profitability and strategy to integrate interactivity into our live TV streaming experience. While striving to be the most compelling destination for cord cutters, fuboTV has started to enact a series of approaches to increase monetization, accelerate our ad sales business and further strengthen our unit economics.”
