⚾⚽ FuboTV: Where’s The Mojo?

Amazon draws curtains on Prime Now. Microsoft's latest buy in China.

Hey Global Investor, here’s what you need to know before the US markets open.

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⚾⚽ FuboTV: Where’s The Mojo?

Sports streaming service provider Fubo TV (FUBO) delivered its highest ever quarterly revenue, paid-subscriber count, and viewership hours in Q1. Even as clarity on its bottom-line remains hazy, it remains bullish on its prospects for the year.  (Tweet This)

Cutting the Cord

Cable TV operators are fighting to stay afloat. The culprit? Content streaming operators who offer a bundle of channels for a lower-than-cable fee across devices. This convenience meant 5M+ subscribers chose to sever their cable TV connections and go in for streaming last year.

Globally, streaming platforms grew their subscriber base by 80% to 1.14B in 2020 from 633M in 2019. The trajectory is expected to continue and the sector revenue is likely to double to $100+B in 2024 from $50B in 2019, with the growth coming from over 138 countries.

FuboTV was launched in 2015 as a football streaming service and morphed into an all-sports service soon thereafter. It has now emerged as the most popular provider of live TV streaming. Fubo charges its subscribers between $29.99 to $79.99 per month and provides access to 150+ channels.

After a brief aberration, Fubo TV is bouncing back and it has the numbers to prove it.

Betting On Growth

Key stats for Q1:

Revenue: $119.7M Vs $103.9M expected

Loss Per Share: $0.59 Vs $0.72 expected

Net subscriber growth: Addition of 43K Vs. loss of 28K in Q1 2020

Y-o-Y, Fubo has more than doubled subscription revenue, tripled advertising revenue, and doubled its overall revenue over the past year. On the back of this outperformance, FuboTV has raised its guidance for the rest of 2021.

It now expects ~$525M in revenue this year, suggesting a Y-o-Y growth of ~100%. Fubo also expects subscribers to grow by over 50% to about 840K as compared to its earlier projection of 770K. So where is this growth expected to come from?

The company is making its foray into the sports betting business and sees this as its growth engine. To bolster its offerings, Fubo acquired sports betting and interactive gaming company Vigtory for $37.2M. This deal was consummated in March. Fubo’s betting app Sportsbook is expected to launch later this year.

Since its IPO in October 2020, Fubo’s shares climbed to a peak of $62 in December 2020 and have since lost 70% of the sheen. However, that’s not stopping the company from pushing forward with a renewed sense of optimism as it pursues its ambitious growth plans.

Market Reaction
FUBO ended the day at $20.29, down 1.3%.

Company Snapshot 📈

FUBO $20.29 -0.27 (1.31%)

Analyst Ratings (8 Analysts) BUY 88%  HOLD 12%  SELL 0%

Newsworthy 📰

Moving on: Amazon is shutting down its Prime Now fast delivery app (AMZN -1.37%)

Snapping: Snap buys WaveOptics, a company that makes parts for augmented reality glasses, in $500 million deal (SNAP -0.81%)

MicroShop: Microsoft pushes into the growing grocery tech market with a new deal in China (MSFT -0.53%)

Later Today 🕒

  • Nordson Corporation Earnings (NDSN)
  • Agora Inc Earnings (API)
  • America’s Car-Mart Inc. Earnings (CRMT)
  • Coastal Financial Corporation’s Annual General Meeting

Fun Fact of The Day 🌞

15.2% of startup founders had a sibling that previously started a business

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