FuboTV to cease operation of Fubo Sportsbook, effective immediately
FuboTV plans to close its Fubo Gaming subsidiary and cease operation of its owned-and-operated Fubo Sportsbook effective immediately.
The decision follows a strategic review of the Fubo Gaming business, with the group explaining that while multiple parties expressed interest in the business, none of the opportunities presented would have allowed the company to lower its funding requirements and generate sufficient returns to shareholders.
The news also comes amid Fubo’s preliminary third quarter 2022 results, with the company expecting to close the period with North American revenue of at least $210m, a 34% increase from the prior-year period.
Rest of World revenue is expected to be at least $5.5m, which includes Molotov, the French live TV streaming service acquired by FuboTV in December 2021.
The group expects to post approximately negative $100m of adjusted EBITDA for the period, with its balance of cash and cash equivalents at the end of the quarter expected to be at least $300m.
Paid subscribers in North America are expected to exceed 1,220,000, up 27% year-over-year, with Rest of World paid subscribers expected to reach approximately 350,000.
“FuboTV’s strong preliminary third quarter 2022 results reflect meaningful advancements against our continued mission to profitably scale a leading global live TV streaming platform differentiated by the greatest breadth of premium content and interactivity,” said FuboTV Co-Founder and CEO David Gandler.
“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. We’re pleased with this expected performance, and our progress toward achieving our positive cash flow target in 2025.”
Gandler also touched on the decision to cease operation of Fubo Sportsbook, saying: “Following our previously announced strategic review, we have concluded that continuing with Fubo Gaming and Fubo Sportsbook in this challenging macroeconomic environment would impact our ability to reach our longer term profitability goals.
“Therefore, we have made the difficult decision to exit the online sports wagering business effective immediately. We look forward to providing more colour, as well as discussing our full third quarter 2022 results and full year outlook, on our November 4 earnings call.”
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