Fubo TV posted revenue of $44.2 million for the three months ended in June, up 53% from the year before, and anticipates ending the current third quarter with 340,000 to 350,000 subscribers.
That would be up from the 286,126 subscribers the virtual MVPD clocked at the end of March and factors in continuing uncertainty around the return of live sports, specifically college football and the NFL, due to the pandemic, the company said. Sports content contributes more to revenue and subscriber additions in the third and fourth quarters.
Subscription and advertising revenue came in at, respectively, $39.5 million and $4.3 million last quarter. Monthly active users watched 140 hours per month on average in the period.
“We believe consumers will continue to choose streaming over traditional pay television, especially in the current economic climate because of its more personalized, premium viewing experience,” said CEO David Gandler. “The growth of streaming is one of the most significant changes to television, and television advertising, in the last several decades. FuboTV is at the forefront of the streaming revolution and we are excited for existing and new investors to join us on this journey.”
Fubo is currently traded on the over-the-counter, or OTC market, but has filed to list on a major exchange. It’s been working to strengthen its financial position and said it’s recently closed $46 million in equity funding from institutional and private investors, including $26 million in a transaction with Credit Suisse Capital in early July.
Edgar Bronfman Jr., former CEO of Warner Music, is executive chairman. Henry Ahn, head of distribution for Univision, is on the board along with Daniel Leff, founder of venture capital firms Luminari Capital and Waverley Capital and an early investor in Roku, and Par-Jorgen Parson, an early investor in Spotify.
In April, Fubo merged with tech-driven AR/VR company FaceBank. The legacy FaceBank business reported no revenue in the second quarter of 2019 and 2020. “While we are working on multiple initiatives that leverage FaceBank’s IP, technology and assets, we expect the monetization of these assets will require a few more quarters,” Fubo said.
Meanwhile, Gandler said in a letter to shareholders, he sees value-added elements like cloud DVR storage and the ability to view multiple streams driving the business, along with the addition of the Disney Media Networks to Fubo’s programming portfolio. He said that with Disney, Fubo TV is expected to have the most complete NFL game coverage of any vMVPD.