Latest News

: FuboTV stock rallies after outlook hiked, sports-betting business dropped

0

FuboTV Inc. shares rallied in the extended session Monday after the streaming TV platform hiked its sales forecast for the third quarter, said it was dropping its sports-betting businesses and reaffirmed its outlook of positive cash flow four years from now.

FuboTV
FUBO,
+6.30%

shares surged as much as 12% after hours, and were last up around 8% in the extended session, following a 6.3% climb to finish the regular trading day at $4.05 a share.

Late Monday, the company said it expects more than 1.22 million paid subscribers in North America for the third quarter, an increase of more than 27% year over year, with rest-of-the-world paid subscribers expected to reach about 350,000, or more than 1.57 million combined. Analysts surveyed by FactSet estimate 1.44 million total subscribers.

FuboTV’s previous third-quarter subscriber guidance was 1.14 million to 1.16 million for North America, and 340,000 to 360,000 rest-of-world subscribers, or a combined range of 1.48 million to 1.52 million subscribers.

Also, the company said it expects third-quarter North American revenue of at least $210 million, up about 34% year-over-year, and rest-of-world revenue of at least $5.5 million, for a total of at least $215.5 million. Analysts estimated revenue of $209.6 million for the third quarter.

Previously, FuboTV forecast North American revenue of $200 million to $205 million, and $5 million to $6 million for rest-of-world, or $205 million to $211 million combined.

 “We expect to deliver strong revenue and subscriber growth in Q3, exceeding our previously issued guidance in North America, against the backdrop of a highly competitive operating environment,” said David Gandler, FuboTV’s co-founder and chief executive, in a statement. “We’re pleased with this expected performance, and our progress toward achieving our positive-cash-flow target in 2025. “

The company also announced it will discontinue its Fubo Gaming and Fubo Sportsbook “in this challenging macroeconomic environment,” following a strategic review. “We have made the difficult decision to exit the online sports-wagering business effective immediately,” Gandler said, adding the company will provide more color, as well as a full-year outlook, when it reports results on Nov. 4.

Nearly a month ago, one analyst upgraded FuboTV, calling the stock’s price of around $4 a share a “compelling entry point.”

Shares are down 74% for the year, compared with a 23% fall by the S&P 500 index 
SPX,
+2.65%
,
and a 32% drop by the tech-heavy Nasdaq Composite Index 
COMP,
+3.43%
.

The Ratings Game: Roblox stock rockets 20% on ‘impressive’ turnaround from yearlong slide

Previous article

: ‘It democratizes what you get’: Hearing aids are now available over the counter — what you need to know

Next article

You may also like

Comments

Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News