FuboTV abandoned those plans late last year. However, it costs a lot of money - and time, given the regulatory nuances of the industry - to make that work. When your sales pitch for potential subscribers is a wide breadth of live sports worldwide, you're going to have a juicy target audience of potential gamblers.
It launched predictive fantasy games on its app with plans to eventually roll out its own online sportsbook. There's still a long way to go before turning the corner, but fuboTV is committed to turning cash-flow positive in 2025.įuboTV has had to scale back on its once-ambitious dreams of being a hotbed for gambling. It clocks in with year-over-year improvement in cash burn, net loss, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). Losses continue on the bottom line, but the math is getting kinder for fuboTV. Total advertising revenue was flat in this iffy environment for the marketer missives, down 1% year over year and substantially lower on a per-subscriber basis. The entirety of that bump is pricing increases, as carriage rights to stream popular channels continue to rise. FuboTV's average revenue per user has risen from $71.43 a month to $76.79 a month over the past year. Paying for a live TV streaming service isn't cheap. FuboTV's audience of paid subscribers rose 22% to 1.285 million, well ahead of its initial forecast of ending March with just 1.14 million to 1.16 million accounts. Guidance back in February was calling for just $295 million to $300 million on the top line.
It's against this ho-hum backdrop that fuboTV delivered strong results late last week. We're nowhere close to the leading premium streaming services with nine-figure global audiences. FuboTV has just 1.285 million paid subscribers, but even the largest player - Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) YouTube TV - has struggled to grow to 5 million accounts. Programming costs are prohibitive with all of the network licensing deals, and cutthroat pricing makes this a challenging niche to run profitably. Live TV streaming platforms are great for consumers, but investors haven't been as fortunate. You can continue to access the same dozens (if not hundreds) of local networks and national media channels that you did before in real time, coupled with the convenience of easily stopping or restarting the service without cumbersome hardware installations. Going into overtimeĬord-cutting is real, and the appeal of a live TV streaming service is natural for former cable and satellite television customers. Let's take a closer look at last week's encouraging report, as well as what the growing but deficit-riddled media provider will need to do in the year ahead to win back the market's attention and respect. Putting up better-than-expected financial results is always appreciated, but fuboTV can't stop there if it wants to earn a victory lap.
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