Exclusive: FuboTV CEO Talks Sportsbook Plans, Fubobet Confusion, Addresses Bears

Sports-focused TV streaming platform fuboTV Inc. FUBO CEO David Gandler appeared on Benzinga's PreMarket Prep Friday. 

Entry Into Sports Betting: On Wednesday, the company announced a partnership with gaming company Caesars Entertainment Inc CZR to bring the Fubo Sportsbook to at least three states. The deal follows the company's previous acquisition of Vigtory in January, and will enable them to go live with a sportsbook in the fourth quarter. 

Despite competition from larger rivals — including Draftkings Inc DKNG, which reached an agreement with Dish Network Corp DISH earlier this week — Gandler said FuboTV is well-positioned.

In fact, that announcement is a validation of fuboTV's existing strategy, Gandler said. 

"I've been saying for a year or more that we sit at the intersection of three mega-trends," he said. "The deal you're referring to in my opinion validates what I've been saying for quite some time."

FuboBet Confusion: Gandler also responded to confusion over Fubobet.com, which gained attention on Wall Street this week and had some investors wondering if the company was going to imminently launch its sportsbook.

"That is a splash page that we put up Nov. 30 of last year to test colors and to test name. The miscommunication was that this was not an official launch," he said.

FuboTV's Widening Loss: 2020 was an impressive year for FuboTV, as revenue grew 83% year-over-year to $268.8 million. Paid subscribers improved from 316,000 in 2019 to 548,000 in 2020. Yet the company's loss per share worsened from $1.07 in 2019 to a loss of $2.47 per share in 2020.

The loss alone doesn't tell the whole story, Gandler said, adding that the majority of the losses are attributed to a reevaluation of warrants, an impairment charge related to FaceBank assets and tens of millions of dollars worth of stock-based compensation. 

"The losses are not as excessive as it looks," the CEO said.

The remainder of the losses are merely due to the company's young age and its motivation to move quickly with limited capital to take advantage of the hot, but expensive streaming and sports betting markets, he said.

Addressing FuboTV Bears: Some of the negative headwinds highlighted by bears, such as a collapse in downloads in December, are "just fake," the CEO said.

Bears are overlooking the fact that FuboTV not only "delivered on everything it said it would," but its outlook was lifted three times in three quarters, he said.

"I think there is a lack of understanding in the business and I honestly don't think there is anything that we can do to get some people to change their minds," Gandler said. "We only focus on what we can control."

FUBO Price Action: FuboTV shares were down 10.5% at $28.81 at last check Friday. 

Watch to the full interview with David Gandler in the clip below.

PreMarket Prep is a daily trading show hosted by prop trader Dennis Dick and former floor trader Joel Elconin. You can watch PreMarket Prep live every day from 8-9 a.m. ET Benzinga's YouTube channel, and the podcast is on Spotify, iTunes, Google Play, Soundcloud, Stitcher and Tunein.