FuboTV CEO David Gandler talks about his company’s quarterly report and enters the world of sports science.
FuboTV CEO David Gandler on Wednesday defended its outlook on its streaming brand as shares fell 18% following lukewarm results and news that rival Dish Network has partnered with DraftKings to form an in-app betting partnership .
Dish Network subscribers can access the DraftKings app, place bets and bet in real time via the Dish TV Hopper, Dish’s Sling TV and Dish-owned Boost mobile. The partnership was announced one day after a fourth-quarter mixed earnings report for FuboTV, which reported a net loss of $ 570.5 million or $ 2.47 per share, well above the 85 cents per share on Wall Street was expected. Dish’s Sling TV package for internet delivery competes with FuboTV.
Gandler downplayed concerns about the larger-than-expected loss, pointing out that FuboTV nearly doubled its quarterly revenue compared to the same period a year ago. The company’s paid subscriber base rose 73% for the quarter.
“We had a very strong year. We exceeded $ 100 million in the fourth quarter. We have now collected the lead three times already. This is a new business. We grow, we grow fast. We delivered too many of our KPIs. ”
| Ticker | Safety | Last | Alter | Alter% |
|---|---|---|---|---|
| FUBO | FUBOTV | 34.14 | -7.75 | -18.50% |
Because of Sling TV, the Dish-DraftKings deal presents a direct challenge to FuboTV. But the six-year-old service is planning its own sports betting function in the coming months. In a press release, Dish notes that DraftKings integrations could be added to Sling in the future.
FuboTV has been a favorite on Wall Street for the past few months, with a share of nearly 300% compared to last year in March. However, there is competition in the streaming industry and competing services like Hulu and YouTube offer bundles at the same price of $ 64.99 per month. Dish’s Sling TV has packages starting at $ 34.99.
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“The competition is very tough, but if you look at the fourth quarter, we added 92,800 net additions,” Gandler added. ‘If you look at leading traditional MVPDs [multichannel video programming distributor] as well as our virtual counterparts, I think we performed better than all the companies that actually report it. ”
FuboTV is one of several brands aimed at securing the market share in the sports betting industry. A growing number of states have legalized sports betting since the Supreme Court rejected a federal ban in 2018.
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Gandler said he expects FuboTV’s integration of sports books to begin sometime in the fiscal fourth quarter.
“We have a unique opportunity to combine a video product with more than 50,000 sporting events with a betting product that we believe can create a beautiful flywheel and improve engagement and retention,” Gandler said.