FuboTV Stock Jumps 20% On Q3 Streaming Subscriber Gains
Shares in FuboTV, which recently went public, jumped more than 20% in early trading Wednesday after the company reported better-than-expected subscriber numbers for its streaming TV packages.
After the close of trading Tuesday, Fubo reported 455,000 subscribers as of September 30, up 58% from the same period in 2019 and ahead of forecasts from the company and Wall Street analysts. Total revenue increased 47% to $61.2 million. Average revenue per user, a key metric in the streaming business, came in at $67.70 per month in the quarter, up 14% from the prior-year quarter.
FuboTV stock, which went public in mid-October, went past $19 a share Wednesday on trading volume more than five times normal levels. It has nearly doubled since its IPO.
While it is not the dominant player in the internet-delivered TV business, Fubo has established its identity since launching in 2015 in large part by providing a wide array of sports programming. Bigger rivals like YouTube TV, Hulu with Live TV and Sling TV all have between 2 million and 3.5 million subscribers but have seen turbulence and high churn as they have spent heavily on acquiring customers.
In Fubo’s earnings release, co-founder and CEO David Gandler said, “A heavy sports calendar, busy news cycle and Hollywood’s fall entertainment season delivered many viewing options for consumers.”
Edgar Bronfman Jr., the former Warner Music CEO and media veteran, joined the company as executive chairman earlier this year. In the earnings release, he said Fubo “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.”
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