Sports-centric streaming television service Fubo saw its subscriber base grow 22 percent over the last 12 months, according to the latest figures released by its parent company Fubo TV on Friday.
The company ended its first financial quarter of the year with around 1.15 million subscribers who pay at least $75 a month for dozens of live sports, cable news and general entertainment channels on the Fubo streaming service, exceeding the company’s growth guidance that was given to its shareholders earlier in the season.
Domestic revenue at Fubo grew 34 percent to $316.5 million, a jump from the $236.8 million reported this time last year. The company still hasn’t turned a profit, with its total operating expenses growing 11 percent to $405.8 million for the quarter, generating a net loss of $83.4 million for the three-month period that ended March 31.
Still, the financial figures show Fubo is starting toward its long-promised path toward profitability — which still could take some time — with its net loss reduced 35 percent compared to last year’s $128.4 million.
Like its peers, Fubo has been impacted by various economic woes, including higher inflation and a pullback in the advertising market that has impacted bottom lines in the media and entertainment space.
Still, executives are looking at the bright side, noting that customer engagement and advertising spend on the platform are “accelerating sequentially.”
“Consumers are choosing Fubo in greater numbers, both with their wallets and with their time and attention,” executives wrote in a letter to shareholders published Friday.
Wall Street was impressed with the earnings report, with investors sending Fubo’s usually-battered stock up 27 percent for the day. Shares were trading around $1.50 by lunchtime Friday — still far lower than its 52-week high of $8.14 per share, but still a few notches higher than the $1.12 stock price at the market’s close on Thursday.
Helping Fubo reduce expenses was a partial reorganization of its business last year that saw the streaming TV company shutter its sports wagering service, which executives earlier promised would help unlock additional revenue potentials and keep sports fans engaged.
The prospect of sports betting proved to be too expensive, and securing the necessary licenses to launch Fubo’s sportsbook took too long. The company put that part of the business under strategic review last year, ultimately deciding to shut down those segments a few months later.
Now, Fubo is looking at its various programming offers and pricing them out accordingly. The service dropped several AMC Network channels earlier this year, a move that also brought a price increase across some of its packages. Fubo also now charges a regional sports fee of between $11 and $14 a month in most of the areas where it operates.
On Friday, Fubo executives hinted the company will look toward additional programming and pricing options, including the potential to raise fees further, as it continues to “work towards meaningfully growing subscribers, optimizing our pricing and further improving our mix of premium plans.”
Last month, The Desk reported Fubo CEO David Gandler took home more than $8.38 million in cash and other compensation during 2022, including an award of performance-based bonuses. Around $539,000 of Gandler’s compensation package was tied to revenue and subscriber growth metrics, according to documents filed with the Securities and Exchange Commission.