FuboTV has reported that, after a strategic review of Fubo Gaming, it has decided to close the subsidiary and its Fubo Sportsbook with immediate effect. Fubo Gaming had drawn interest from potential investors, but FuboTV would have had to lower its funding requirements, which would have conflicted with its profitability goals.
FuboTV co-founder and CEO David Gandler commented: “Following our strategic review, we have concluded that continuing with Fubo Gaming and Fubo Sportsbook in this challenging macroeconomic environment would impact our ability to reach our longer-term profitability goals. Therefore, we have made the difficult decision to exit the online sports wagering business. We look forward to providing more color, and discussing our full third quarter 2022 results and full-year outlook, on our November 4 earnings call.”
Its parent company, FuboTV, the live TV streaming platform, also announced its preliminary third-quarter results for 2022. It has reported an expected North American revenue of at least $210m, which represents a 34% year-on-year increase, while its rest-of-the-world (ROW) revenue should generate approximately $5.5m.
Its ROW revenue is made from subsidiaries such as Molotov, the French live TV streaming service which was acquired by FuboTV in December 2021.
Paid subscribers in North America are predicted to exceed 1,220,000, which shows a rise of 27% annually. ROW subscribers, meanwhile, should reach approximately 350,000, as per the preliminary Q3 report.
The company is expected to report a negative $100m adjusted EBITDA in Q3. Despite this FuboTV says the preliminary report is a demonstration of the company’s progression toward its 2025 profitability target. It showed a balance of cash and cash equivalents of $300m.
Gandler commented on the quarterly earnings report: “FuboTV’s strong preliminary third quarter 2022 results reflect meaningful advancements against our continued mission to profitably scale a leading global live TV streaming platform differentiated by the greatest breadth of premium content and interactivity."
