FuboTV Reports 2020 Revenue Up 83%, Lays Out Sports Betting Launch Timeline

Sports first streaming company fuboTV Inc FUBO reported full-year fiscal earnings and updated investors on its plans to launch sports betting.

What Happened: Fourth-quarter revenue of $105.1 million beat Street estimates of $93.9 million.

Fiscal 2020 revenue of $268.8 million was up 83% year-over-year. Advertising revenue grew 133% year-over-year to $29 million for the full fiscal year. Subscriber revenue of $230.7 million was up 73% year-over-year for the full fiscal year.

The company ended the full fiscal year with 547,880 paid subscribers adding an additional 92,800 subscribers in the fourth quarter. Paid subscribers were up 73% year-over-year for the full fiscal year.

Average revenue per user was $62.84 in the fourth quarter, compared to $42.77 in fiscal 2018 and $59.14 in fiscal 2019.

Related Link: FuboTV Spikes 20% On Strong Revenue, Online Sports Betting Announcement

Sports Betting Plans: The company announced it closed its acquisition of Vigtory, a sports betting and interactive gaming company. The acquisition allows fuboTV to “accelerate the launch of our owned and operated sportsbook, fubo Sportsbook.”

FuboTV announced its first market access deal for its sportsbook with a deal through Casino Queen in Iowa. The company announced agreements with Major League Baseball and the National Basketball Association to become authorized gaming operators for each league.

“These agreements will provide official data and include MLB and NBA league marks and logos within fubo Sportsbook once it is rolled out,” the company said.

The company is planning to launch its free-to-play predictive games in the third quarter first to its subscribers and then later to all consumers. A sportsbook from fuboTV is expected to launch in the fourth quarter.

“We expect the integration of gaming with our expansive live sports coverage will crate a flywheel that improves engagement and retention, as well as drives advertising revenue,” the company said.

What’s Next: Guidance from fuboTV calls for first-quarter revenue of $101 million to $103 million and 520,000 to 530,000 subscribers.

For fiscal 2021, fuboTV sees revenue in a range of $460 million to $470 million and subscribers in a range of 760,000 to 770,000.

Price Action: FuboTV shares initially spiked in after-hours trading, but were down about 1% at time of publication. Shares of fuboTV closed up 14% to $44.40 in Tuesday's regular trading session.

Disclosure: The author is long shares FUBO.