fuboTV raises third quarter guidance | Major Businesses | Business
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In a sign of its relative current strength, and optimism, streaming service provider fuboTV Inc has raised its subscriber guidance for the third quarter 2020 as a result of the start of NFL and the autumn sports seasons.
fuboTV Platform 24March 2020
The updated Q3 2020 guidance is that revenues for the third quarter 2020 will be in the range of $50-$54 million, what would represent a 27% to 38% increase year-on-year. This projected increase has at its basis continued subscriber growth, an increase in subscription average revenue per user (ARPU) and growth of advertising sales. The third quarter is also expected to be fuboTV’s highest revenue quarter of 2020, with a 100% year-over-year increase. Advertising ARPU is expected to be $6-$7.

The company is raising third quarter subscriber guidance to 370,000-380,000, an increase of over 28% year-over-year and up from 20% growth previously forecast. This is as a result of the start of the NFL and the fall sports seasons.

Looking out further, fuboTV forecasts that revenues for the fourth quarter will be between $68-$75 million, a 53% to 68% increase compared with the same quarter a twelve months ago. The company expects to end the fourth quarter with 410,000-420,000 paid subscribers, what would be an increase of 30% to 33% year-on-year. Full year 2020 revenue guidance is $220-231 million, an annual increase of over 50% and 2021 revenue guidance is $400-420 million.

“The current quarter has been very strong for fuboTV with double digit revenue and subscription growth year-over-year as well as improvement in retention - all achieved during the ongoing pandemic,” commented fuboTV CEO David Gandler.

“With the leading live sports package in the market, we are encouraged that the major sports leagues have found ways to navigate the pandemic. The NFL has a great example with Major League Baseball on how to handle Covid-19, and we’re excited for the season. The start of the NFL season and the expectation of a heavy fall sports calendar is driving engagement, ad revenue and higher CPMs, giving us additional confidence to forecast a strong third quarter for fuboTV. Looking ahead, we are focused on driving revenue growth by increasing subscription and ad sales and improving engagement.”

In July 2020, fuboTV attracted a $20 million cash injection from Credit Suisse Capital, taking the live TV streaming sports and entertainment service’s total investment from institutional and private investors for the year to over $46 million.