FuboTV to shutter online sports betting division
FuboTV said it was dropping its sports-betting businesses and reaffirmed its outlook of positive cash flow four years from now.
FuboTV 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.
“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.