FuboTV shuts down its online sports betting subsidiary
Independent virtual multichannel streaming player, FuboTV, announced it would exit its online sports wagering business, Fubo Gaming, and close down its Fubo Sportsbook venture.
FuboTV blames challenging macroeconomics for the shutdown
In its official preliminary third-quarter financial results report, the company said that due to a “challenging macroeconomic environment”, it decided that continuing with Fubo Gaming and Fubo Sportsbook would impact its ability to reach long-term profitability goals.
FuboTV Co-Founder and CEO David Gandler added that this was a difficult decision to make but that it is effective immediately.
He explained that sports streaming and online betting became an extremely competitive sector, so FuboTV decided to exit.
He added that in spite of considerable interest for the sports betting assets, the company hasn’t recognised potential partners to help reduce upfront launch costs and see its way to profitability for shareholders by integrating its streaming TV offering with sports betting.
FuboTV expects to exceed prior guidance in NA
Furthermore, the company is expected to close the third quarter of 2022 with North American revenue of approximately $210 million, representing a rise of 34 percent year-over-year, and rest-of-world (ROW) revenue of at least $5.5 million.
Prior third-quarter revenue guidance for the North American streaming business was $200-205 million and $5-6 million for ROW. ROW includes Molotov, the French live TV streaming service acquired by FuboTV in December 2021.
The company added that it expects adjusted EBITDA to stand at negative $100 million for the period, with its balance of cash and cash equivalents at the end of the quarter expected to be at least $300 million.
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