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Video/Media

FuboTV subs climb to 590,000, up 105% year-on-year

FuboTV, the self-proclaimed "sports-first" virtual multichannel video programming distributor (vMVPD), bucked the broader pay-TV industry trend by adding 43,000 subs in Q1 2021, ending the period with 590,000, a year-on-year increase of 105%. FuboTV lost 28,000 subs in the year-ago quarter.

Total Q1 revenues surged 135%, to $119.7 million. Revenues at FuboTV's budding advertising business jumped 206%, to $12.6 million, while subscription revenue climbed 131%, to $107.1 million. Its average revenue per user (ARPU) rose 28%, to $69.09, while content hours streamed jumped 113%, to 228 million. However, that was not all enough to avoid a Q1 2021 net loss of $70.2 million, widened slightly from a year-ago net loss of $66.6 million.

FuboTV now expects to end Q2 2021 with 600,000 to 605,000 subs, and end the year with between 830,000 and 850,000 subs, an increase of 40% from prior guidance. That outlook also implies full-year 2021 net adds of at least 282,000 subs, 20% higher than its 232,000 net sub adds for full-year 2020.

Click here for a larger version of this image.  
(Source: FuboTV)
Click here for a larger version of this image.
(Source: FuboTV)

The company expects full-year revenues in the range of $520 million to $530 million.

In a letter to shareholders, FuboTV offered a brief update on its plans to integrate its core OTT-TV service with interactivity and gaming components. The company said it's on track to launch a free-to-play gaming service based on users predicting live game action in Q3 2021, with beta tests set to begin in the "coming weeks."

"The beta test will give us the opportunity to introduce gaming to a cohort of users, gather data on usability and optimize ahead of launch," the company explained.

The Fubo Sportsbook service, which will allow betting in authorized areas, is expected to launch in Q4 2021, pending Fubo TV's ability to secure state regulatory approvals. FuboTV noted it acquired three market access licenses – including Indiana, Iowa and New Jersey – with more discussions in progress.

FuboTV believes its coming sportsbook will allow it to reach a wider and more engaged customer base. The company said its mobile app installs average about 400,000 per month, and rises to 600,000 app installs during the National Football League season.

FuboTV appears to be among a small group of vMVPDs that have seen an uptick in downloads. According to Evercore ISI's "App Wrap" report for April 2021, total vMVPD downloads dipped 23% year-over-year. FuboTV (+162) and AT&T TV (+26) were the big gainers compared to Sling TV (-70%) and YouTube TV (-20%). However, YouTube TV continues to lead the way in vMVPD download market share, according to the study.

Click here for a larger version of this image.  
(Source: Evercore ISI 'App Wrap' report)
Click here for a larger version of this image.
(Source: Evercore ISI 'App Wrap' report)

FuboTV ended the quarter with $465 million of cash, cash equivalents and restricted cash, a figure that includes $390 million in net proceeds from the closing of its convertible senior notes offering on February 2.

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— Jeff Baumgartner, Senior Editor, Light Reading

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