The news comes despite Fubo posting 41% growth year-to-year, with 946,735 subscriptions at the end of the second quarter. International patrons in France and Spain also eclipsed 347,000. North American revenue increased by 65% to $216.1m and international revenue reached $5.8m.
However, Fubo CEO David Gandler and chairman Edgar Bronfman Jr. noted that the company’s impressive numbers “came under pressure primarily due to underperformance of specific sports content during a typically low-growth part of the year.”
FuboTV quickly leaves gambling
Fubo first announced its plan to join the betting market in the middle of June. Its gambling service launched in Iowa and Arizona; it planned to expand to other states during football season.
All that was required of fans was to scan a QR code, which then redirected them to the Fubo sportsbook. Fans in states outside of Arizona and Iowa could still compete for points on a non-monetized leaderboard.
A letter to shareholders noted economic changes and rising inflation as sources of concern.
Yet as the market has evolved, Gandler and Bronfman are looking to “refine and adjust [their] business.” A letter to shareholders noted economic changes and rising inflation as sources of concern.
“We see meaningful opportunities to continue to reduce internal costs as well as to drive improvement of content-related unit economics,” wrote the Fubo pair. “We are continuing to work towards materially growing our high margin advertising revenue. We believe in this economic environment that cord cutting will only increase and that Fubo will continue to benefit from this accelerating trend.”
Notably, Fubo’s trading price rose after the revenue figures were released.
A looming return
Fubo is not giving up on joining the gambling market as a whole. Instead, they are simply prolonging the process while retaining a heavy interest.
Gandler and Bronfman said that after they “evaluated how best to scale [their] capabilities in today’s market,” they would no longer “pursue this opportunity on [their] own.” As a result, the interactive betting service is now “under strategic review.”
Bettors need not fret, for where one door shuts, another seems to have opened. Fubo specifically noted that they would not pursue the opportunity on their own, which suggests that they could partner with another operator, organization, or location to reenter the market.
Fubo is already working with the NBA’s Cleveland Cavaliers, making it the first streaming service to join forces with an Ohio-based team.
the higher-ups made it clear that they will have the conversation again one day
There is no immediate timetable on when Fubo will look to rejoin the gambling scene. Still, the higher-ups made it clear that they will have the conversation again one day.
“We are in internal and external discussions to determine the best path forward for Fubo’s gaming business and look forward to sharing more information,” said Gandler and Bronfman.
FuboTV posted a net loss of $116.3m, including $10.7m in goodwill impairment linked to its gaming operations.
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