DraftKings announced a deal<\/a> Wednesday with DISH Network. DISH offers its own streaming service, Sling TV.<\/p>\nOn Tuesday, fuboTV executives announced fourth-quarter revenues of $105.1 million. It marked the first time the service\u2019s revenues ever reached nine figures for a quarter. However, CFO Simone Nardi told analysts on the earnings call that the company expects revenues for the first quarter of 2021 to fall between $101 million and $103 million.<\/p>\n
The company also expects paid subscribers at the end of the first quarter to run between 520,000 and 530,000.<\/p>\n
\u201cHistorically, Q1 has been softer than Q4, when viewed sequentially on revenues, as well as contribution margin,\u201d Nardi said on the call.<\/p>\n
The first quarter coincides with the end of the pro and college football season. Those two typically generate the highest ratings among sports broadcasts.<\/p>\n
Losses Increase, But Executive Optimistic<\/h2>\n
While revenues went up for fuboTV, so, too, did losses. The company reported a net loss of $167.8 million for the fourth quarter and $570.5 million for the year.<\/p>\n
Still, company executives found many positives from the past year, including a 73 percent increase in subscribers. Not only did that base grow, but people watched more, too. Viewers watched nearly 545 million hours in 2020, up 82 percent from 2019. The average viewer streamed 7.2 hours daily, up nearly 12 percent.<\/p>\n
In a letter to shareholders, Cofounder and CEO David Gandler and Executive Chairman Edgar Bronfman Jr. said the company exceeded expectations on revenue, revenue per user, advertising revenue per customer, and paid subscribers.<\/p>\n
They told investors there\u2019s \u201cso much more to come\u201d from the company in 2021.<\/p>\n
We believe our sports-focused differentiated position will allow us to continue to grow our business across (key performance indicators), including advertising,\u201d Gandler and Bronfman wrote. \u201cOur goal is to develop fuboTV into a new kind of media company that combines streaming video and interactive sports wagering.\u201d<\/p><\/blockquote>\n
While the company has several key indicators, investors and analysts seem fixated on one issue.<\/p>\n
Seeking Alpha<\/em> shared this line from Evercore ISI\u2019s analysis of fuboTV: \u00a0\u201cAt this point, FUBO\u2019s value is largely predicated on investors\u2019 outlook on their potential success in sports betting.”<\/p>\nCaesars Gives FuboTV Sports Betting Access<\/h2>\n
The day after the financial report, the company announced it secured market access agreements with Caesars Entertainment to operate the fuboTV Sportsbook in Indiana and New Jersey.<\/p>\n
That agreement comes on the heels of securing access in Iowa thanks to an agreement with the Casino Queen. In addition, fuboTV has already inked deals with NBA and MLB to serve as authorized gaming operators for both leagues. Those deals will give the sportsbook the ability to use league marks and logos. More importantly, it provides access to official league data.<\/p>\n