Streaming provider FuboTV is no longer interested in pursuing an integrated gambling-streaming service on its own.
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 adjusts its course
Fubo already allows users to make in-app predictions on the outcomes of games. Its gambling service launched in Iowa and Arizona, and the company planned to expand to other states during football season.
All that is required of fans was to scan a QR code, which then redirects them to the Fubo sportsbook. Fans in states outside of Arizona and Iowa can 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 decision
Fubo is not giving up on expanding within gambling market as a whole. Instead, they are simply prolonging the process while contemplating different paths to take.
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 implies that they are hunting for a partner to help run the service.
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 announce its new plan. 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.