Fubo strong Q2 ahead of Venu Sports launch
August 6, 2024
FuboTV, the sports-first live TV streaming platform, has reported its financial results for Q2. The quarter marked Fubo’s sixth consecutive quarter of year-over-year (YoY) improvement in its global profitability metrics as it prepares to take on Venu Sports.
In North America, the company exceeded guidance, ending the second quarter with double digit YoY growth, delivering $382.7 million (€350.7m) in total revenue, up 26 per cent YoY, and 1.45 million paid subscribers, up 24 per cent YoY. Average revenue per user (ARPU) expanded 5 per cent YoY to $85.69. The quarter was also highlighted by a 14 per cent increase in ad sales revenue YoY as the result of efforts to increase visibility within agency holding companies continued during the start of the 2024 Upfront season.
In the Rest of World (ROW), the company delivered 399,000 paid subscribers, up 1 per cent YoY, and $8.3 million total revenue, up 2 per cent YoY, during the quarter. ARPU reached $7.02, up 2 per cent YoY. ROW includes the results of Molotov, the French live TV streaming service acquired by Fubo in December 2021.
Guidance
North America
Q3 2024: Fubo is projecting 1,605,000 to 1,625,000 paid subscribers, representing 9 per cent YoY growth at the midpoint, and $360 to $370 million total revenue, representing 17 per cent YoY growth at the midpoint.
Full Year 2024: Fubo is increasing previously announced guidance, now projecting 1,725,000 to 1,745,000 paid subscribers, representing 7 per cent YoY growth at the midpoint, and $1.570 to $1.590 billion total revenue, representing 18 per cent YoY growth at the midpoint.
The guidance excludes the potential impact of ongoing antitrust litigation, including the launch of Venu Sports.
ROW
Q3 2024: Fubo is projecting 397,000 to 402,000 paid subscribers, representing 3 per cent YoY decline at the midpoint, and $8 to $9 million total revenue, representing 1 per cent YoY growth at the midpoint.
Full Year 2024: Fubo is projecting 395,000 to 405,000 paid subscribers, representing 2 per cent YoY decline at the midpoint, and $33 to $35 million total revenue, representing 4 per cent YoY growth at the midpoint.
“Fubo delivered excellent results in the second quarter of 2024, despite the Warner Bros Discovery content drop, achieving our sixth consecutive quarter of year-over-year improvement in our global profitability metrics,” said David Gandler, co-founder and CEO, Fubo. “In North America, we exceeded guidance, growing North America revenue by 26 per cent and subscribers by 24 per cent year-over-year. We’re confident we can continue this success as we remain focused on delighting our users with more flexible bundle options as part of our Super Aggregation strategy, delivered to them through a single, frictionless app. We also continue to advocate for a fairer playing field in the media industry, benefiting Fubo, our competitors and, most importantly, the American consumer.”
“Fubo continues to make marked progress in scaling our strong core business while achieving our broader strategic goals,” added Edgar Bronfman Jr, executive chairman, Fubo. “We’re carefully balancing our 2025 profitability target while strategically and cost-effectively investing in subscriber growth, cutting-edge technology, new product features and engaging content. We have raised our full year 2024 guidance in North America, which reflects our continued confidence in our sports entertainment streaming business.”
Addressing the pending launch of Venu Sports, Fubo said: “Given the many unknowns related to the potential launch of Venu Sports, the proposed sports streaming joint venture between the Walt Disney Company, Fox Corporation, and Warner Bros Discovery, including the outcome of our antitrust lawsuit and the Department of Justice’s reported investigation, our guidance and other statements in this letter with respect to Fubo’s financial condition and our anticipated financial performance in future periods do not reflect any potential impact of the launch to our business. Risks related to Venu and the related litigation are described in our filings with the Securities and Exchange Commission, including our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2024, our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2024 to be filed with the SEC, and our other periodic filings.”