FuboTV raises North America guidance after strong Q2
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Editor
| 07 August 2023
Even though at the beginning of the year some financial analysts predicted a tough 2023 for the sports-first live TV streaming platform, FuboTV has exceeded North American guidance in its second quarter with strong rises in revenues and subscribers.
Fubo IOS 2AUg2023
For the second quarter ended 30 June 2023, Fubo exceeded North American guidance, achieving $305 million in revenue, up 41% year-over-year, and 1,167,000 paid subscribers, up 23% year-over-year. The Company delivered ad revenue in North America of $22.8 million in the second quarter, up 5% year-over-year. This marked an expected return to growth despite a challenged advertising market.

Double digit year-over-year growth was also posted by Fubo’s Rest of World (ROW) streaming business. Total revenue achieved was $8.2 million, up 40% year-over-year, while paid subscribers reached 394,000, up 14% year-over-year. ROW includes the results of Molotov, the French live TV streaming service acquired by Fubo in December 2021.

Compared with the same time a year ago, the company reduced net loss by $41 million to $49.9 million, with a $12 million improvement in net cash used in operating activities, grew gross margin to 7% and, in North America, expanded ARPU by 13% to $81.62, marking an all-time record. Fubo also delivered a second quarter adjusted EBITDA improvement of $40 million and a free cash flow improvement of $9 million, compared with the second quarter of 2022.

Looking ahead to the third quarter 2023 in North America, Fubo is projecting 1.327 million to 1.347 million paid subscribers, representing 9% year-over-year growth at the midpoint, and revenue of $272.5 million to $277.5 million, representing 25% year-over-year growth at the midpoint.

The Company is also raising its previously stated full year 2023 guidance for North America. Fubo projects 1.565 million to 1.585 million paid subscribers, representing 9% year-on-year growth at the midpoint, and revenue of $1.26 billion to $1.28 billion, representing 29% year-over-year growth at the midpoint.

“We are encouraged with our execution in the first half of the year, including posting year-over-year double digit revenue and subscriber growth in the second quarter, while meaningfully reducing our net loss by $41 million,” said Fubo co-founder and CEO, David Gandler commenting on the second quarter results.

“With an improving ad sales backdrop we remain on track to achieve our 2025 positive free cash flow target. We are as excited and as confident as ever about the opportunities ahead to leverage our resources on the back of key strategic additions to our platform, including over 35 regional sports networks (RSNs) and more than 125 FAST channels, as well as the Maximum Effort Channel in partnership with Ryan Reynolds and Maximum Effort.”