fuboTV Releases Historical Third Quarter Earnings Report
Leading sports-first live TV streaming platform fuboTV Inc released its third operational quarter results yesterday, delivering the strongest three-month period in its history. The previously raised guidance for investors was exceeded with solid growth in revenue, subscription and engagement.
Increase in Q3 Revenues
fuboTV posted revenues of $61.2 million for the quarter, an increase of 47% compared to the third quarter in 2019 on a pro-forma basis. If the licensing revenue from the FaceBank AG business included in the 2019 figure is excluded, the raise in Q3 2020 is much bigger year-over-year, 71%.
Revenue growth was driven by an increase in the Average Revenue Per User (ARPU) due to the continued expansion in subscriptions, and the rise in advertising sales. Subscription revenue jumped 64% in the quarter compared to the same three-month period last year, to $53.4 million, while revenue from advertising sales posted triple-digit growth year-over-year, 153%, to $7.5 million.
“A heavy sports calendar, busy news cycle and Hollywood’s fall entertainment season delivered many viewing options for consumers. We continued to grow fuboTV’s premium, personal viewing experience with the launch of new product features and new programming including Disney Media Networks (ABC, ESPN, many more), MLB Network, NBC News Now and more.”
David Gandler, Co-Founder and CEO, fuboTV
Q3 2020 subscribers totaled 455,000, a 58% rise compared to the number by the end of the third quarter in 2019, and ARPU per month was $67.70, an increase of 14% year-over-year. fuboTV users, both free trials and paid subscriptions streamed throughout the third quarter 83% hours more than in Q3 2019, and hours watched per month on average by monthly active users (MAUs) in the quarter, 121, exceeded the prior year third quarter by 20%.
IPO Completed, Investor Confidence Strong
In October, fuboTV successfully completed an initial public offering (IPO) to raise $183 million which proved investor confidence in the company’s strategy, fuboTV Executive Chairman Edgar Bronfman Jr. noted.
“We believe fuboTV sits firmly at the intersection of three megatrends: the secular decline of traditional TV viewership, the shift of TV ad dollars to connected TVs and online sports wagering, a market which we intend to enter. As a result, we believe our growth opportunities are numerous. Our optimism in the future of fuboTV and the live TV streaming business has never been stronger.”
Edgar Bronfman Jr., Executive Chairman, fuboTV
In a letter to its shareholders, fuboTV CEO Gandler and Executive Chairman Bronfman provided further detail about the financial results for the quarter in which a net loss of $274.1 million was reported, including non-cash goodwill and intangibles impairment charges of $236.7 million, $27.7 million benefit for income taxes associated with the legacy FaceBank business and $7.6 million gain on the sale of Facebank AG.
Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) was a loss of $47.5 million, $2.9 million lower compared to the loss in Q3 2019.
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