Fubo, the streaming platform, experienced significant growth in subscribers and advertising during the second quarter of this year. This growth was fueled by price increases and increased demand for sports content. In North America, the platform’s total number of subscribers grew to 1.2 million, a 23% increase compared to the previous year. Additionally, North American revenue reached $305 million, up from $216 million, with the 45% increase attributed to price hikes at the beginning of the year and the addition of regional sports networks.
Despite ongoing challenges in ad budgets, Fubo saw a 5% year-over-year increase in advertising revenue, demonstrating the company’s resilience. Fubo anticipates even greater growth in the latter half of the year as it observes green shoots and a rebound in advertising in July. David Gandler, CEO of Fubo, expressed optimism about the company’s advertising recovery, although he acknowledged that Fubo’s rebound may not reflect the overall industry, due to the company’s shift towards direct sales and its popular “sports first” model.
In the third quarter, Fubo reported total global revenue of $312.7 million, a significant rise from $222.1 million the previous year. The company’s net loss for this quarter was $54.2 million, a significant improvement from the $95 million loss reported in the second quarter of 2022. In the rest of the world, Fubo’s subscriber base increased from 347,000 to 394,000.
Gandler expressed satisfaction with the company’s performance in the first half of the year, highlighting double-digit revenue and subscriber growth in the second quarter, along with a substantial reduction in net losses by $41 million. He further emphasized Fubo’s commitment to achieving positive free cash flow by 2025, particularly with the backdrop of an improving ad sales environment. Gandler highlighted key additions to the platform, such as over 35 regional sports networks (RSNs), more than 125 FAST channels, and the Maximum Effort Channel in partnership with actor Ryan Reynolds and his production company, Maximum Effort.
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Fubo recently established a first-look unscripted development deal with Ryan Reynolds’ Maximum Effort in 2022, leading to the launch of a dedicated channel called Maximum Effort Channel in June. One of the channel’s programs is “Bedtime Stories with Ryan,” wherein Reynolds reads stories to viewers. Furthermore, Maximum Effort is assisting Fubo in its rebranding efforts, as the platform plans to stand out by emphasizing its sports offerings and will go by the name Fubo instead of FuboTV.
Fubo executives believe that the company’s focus on live sports will help it remain largely insulated from the Writers Guild of America (WGA) and the Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA) strikes. The company has seen an increase in incoming advertising inquiries related to upcoming NFL games and other sporting events.
In a significant development, Fubo was recently announced as the official streaming partner of the WNBA team Chicago Sky, marking its first partnership with a team in the Women’s National Basketball Association.
Looking ahead, Fubo has issued guidance for the third quarter, expecting 1.327 million to 1.347 million paid subscribers in North America and revenue in the range of $272.5 million to $277.5 million. The company has also raised its full-year guidance for North America, anticipating 1.565 million to 1.585 million paid subscribers and revenue of $1.26 billion to $1.28 billion.
Overall, Fubo’s growth in subscribers and advertising revenue, combined with its strategic partnerships and rebranding efforts, position the company for continued success in the streaming market.
