Fubo, the North American sports-first streaming platform, recently reported its Q2 2023 earnings, revealing a decline in subscribers and mixed revenue results. The company lost 118,000 subscribers during the quarter, bringing the total down to 1,167,000 subscribers from 1,285,000 at the end of the first quarter.
Despite the subscriber drop, Fubo reported a year-over-year revenue increase in Q2 of 41% to $305 million in North America. However, revenues were down compared to the first quarter of the same year. The company’s net loss for the second quarter was $54.2 million, but it was an improvement as they successfully reduced their net loss by $41 million compared to the previous year.
David Gandler, the co-founder and CEO of Fubo, expressed optimism about the company’s performance, highlighting the execution in the first half of the year with year-over-year double-digit revenue and subscriber growth in the second quarter. Gandler said, “We are encouraged with our execution in the first half of the year.” He also emphasized their strategic additions, including regional sports networks and more than 125 FAST channels.
Executive Chairman Edgar Bronfman Jr. echoed this positivity, pointing out the strong year-over-year revenue and subscriber growth in North America, which exceeded their expectations and affirmed the pricing power of their sports-oriented content offering.
The decrease in subscriber-related expenses from 99% to 87% during the same period last year is a positive sign for Fubo, indicating higher profits from each subscriber.
Looking ahead, Fubo has high hopes for the third quarter, projecting subscriber numbers to grow between 1,327,000 to 1,347,000, representing a 19% year-over-year growth at the midpoint. They also anticipate revenue of $292.5 to $297.5 million, indicating a 36% year-over-year growth at the midpoint.
Despite the challenges of declining subscribers, Fubo remains confident in its ability to leverage resources, progress towards profitability, and create value for shareholders as it capitalizes on market dynamics favoring CTV and the appeal of its aggregated sports content offering.
