NEW YORK- fuboTV reported lower subscription levels and lower-than-expected revenue for its virtual streaming service for the first quarter this week.
Subscriptions fell by 75,000 globally in the quarter ending March 31 and the company posted a loss of $140.8 million for the first quarter, compared to a loss of $70.2 million in the first quarter. same period a year ago.
Year-over-year, however, the outlook was positive, according to the company. Total paid subscribers increased 81% year-on-year to 1,056,245 total and ad revenue also increased 81% year-on-year to $22.8 million. Record revenue of $236.7 million in the United States and Canada represented a 98% year-over-year increase.
fuboTV says it lays out its key metrics on an annual basis given the “seasonality” of sports content.
The company also announced for the first time the results of its streaming business in the rest of the world (France, Spain), ending the quarter ahead of expectations with approximately 305,000 total paying subscribers and $5.5 million. of total revenue.
Much smaller than competitors YouTube TV, Hulu and Sling in the vMVPD market, fuboTV offers a subscription package of over 115 channels for $70. In March, it announced it was dropping its “Starter” tier of 100 channels that cost $64.99 per month in favor of the “Pro” tier of 115+ channels. This price is in line with the current offers of its competitors.
David Gandler, co-founder and CEO of fuboTV, said the company encountered “challenges” in its last quarter, but saw future potential in more interactive content, personalization and games (bets in line).
“During our first quarter, in a challenging macro environment, fuboTV delivered strong subscriber and revenue growth, with North American subscribers growing 81% year-over-year,” Gandler said. “In a less robust advertising market, however, we experienced some adjusted contribution margin pressure due to slower-than-expected advertising sales growth, with advertising revenue up 81% year-on-year. on the other. Importantly, we strengthened fuboTV’s balance sheet, ending the quarter with over $456 million in cash. This increased financial flexibility should carry us through 2023, and we are targeting cash flow and EBITDA adjusted (AEBITDA) positive in 2025, with a relatively modest cash requirement expected in 2024.”
“We are committed to a company that replaces the decades-old basic cable plan by providing consumers with more and better content, ‘anytime, anywhere’ access and mobility, choice and increased flexibility, customization and interactivity, including games,” said Edgar Bronfman Jr., executive chairman, fuboTV. “Wagering remains an important pillar in our path to profitability and our strategy to integrate interactivity into our live TV streaming experience. While striving to be the most attractive destination for cord cutters, fuboTV began taking a series of approaches to increase monetization, accelerate our ad sales business, and further strengthen our unit economics.