FuboTV Shuts Down Sports Betting Business, Suffers $100M Q3 Loss

Money-losing sports streaming service FuboTV has said it is closing its sportsbook and exiting the online betting business.

At one point, the virtual MVPD viewed gaming as a way to generate additional revenue and profit from its sports-loving subscribers.

“Following our previously announced strategic review, we have concluded that the continuation of Fubo Gaming and Fubo Sportsbook in this challenging macroeconomic environment would impact our ability to achieve our longer-term profitability objectives,” said the FuboTV co-founder and CEO David Gandler. “Therefore, we have made the difficult decision to exit the online sports betting business immediately.”

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In an SEC filing, FuboTV said that “it expects to incur certain immaterial charges in connection with these matters, primarily related to severance and other employee-related costs; however, the company may also incur other charges, the amount and timing of which cannot be estimated at this time.”

The company said it also expects to incur certain non-cash impairment charges of intangibles and other non-current assets of approximately $70 million. He said these fees are mostly related to market access agreements. It may also incur certain cash charges for the termination of certain contracts.

Fubo also released preliminary third quarter results and said that despite the increase in revenue and subscribers in the third quarter, Fubo will post an adjusted EBITDA loss of approximately $100 million, compared to $81.3 million. dollars a year ago and $79.1 million in the second quarter.

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FuboTV said its North American revenue is expected to be $210 million in the quarter, up 34% from a year ago. Revenue from the rest of the world should be at least $5.5 million.

US subscribers are expected to top 1.22 million, up 27% year-over-year. Rest of the world subscribers are expected to be around 350,000.

Revenue and total number of subscribers exceed the company’s previous forecasts.

Fubo stock, which hit a 52-week high of $35.10, closed at $4.05 on Monday, up 6.3%. It was up another 9% in after-hours trading. ■

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