David Gandler, CEO of FuboTV, in his company’s quarterly report and is entering the world of sports betting.
FuboTV CEO David Gandler defended the business prospects of his streaming brand on Wednesday, when shares plunged 18% after poor earnings results and news that rival Dish Network has partnered with DraftKings in a partnership in-app betting.
Dish Network subscribers will be able to access the DraftKings app, view betting odds and place bets in real time through Dish TV Hopper, Dish’s Sling TV and Dish-Owed Boost mobile. The partnership was announced a day after a mixed fourth-quarter earnings report for FuboTV, which reported a net loss of $ 570.5 million or $ 2.47 per share, far exceeding 85 cents a share. action expected on Wall Street. The TV programming package provided over the Internet by Dish’s Sling competes with FuboTV.
Gandler played down concerns about the larger-than-expected loss, noting that FuboTV almost doubled its quarterly revenue compared to the same period last year. The company’s paid subscriber base increased 73% in the quarter.
“We had a very strong year. We exceeded US $ 100 million in the fourth quarter. We have lifted the guidance now three times. It is a new business. We are growing, we are growing rapidly. We surpassed all of our KPIs. “
| Ticker | Safety | Last | Change | Change % |
|---|---|---|---|---|
| FUBE | FUBOTV | 34.14 | -7.75 | -18.50% |
Because of Sling TV, Dish-DraftKings’ business represents a direct challenge for FuboTV. But the six-year service is planning its own sports betting feature in the coming months. In a press release, Dish noted that DraftKings integrations could be added to Sling in the future.
FuboTV has been the darling of Wall Street for the past few months, with an increase of almost 300% in shares compared to last March. But competition is fierce in the streaming industry and rival services like Hulu and YouTube offer packages at an identical price of $ 64.99 a month. Dish’s Sling TV has packages starting at $ 34.99.
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“Competition is very strong, but if you look at the fourth quarter, we added 92,800 net additions,” added Gandler. “When you look at the list of traditional MVPDs [multichannel video programming distributor] just like our virtual peers, i think we outperform all the companies that actually report this. “
FuboTV is one of several brands that aim to guarantee market share in the sports betting industry. An increasing number of states have legalized sports betting since the Supreme Court overturned a federal ban in 2018.
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Gandler said he expects FuboTV’s sports betting integration to be launched sometime in the fourth fiscal quarter.
“We have a unique opportunity to combine a video product that has more than 50,000 sporting events with a betting product that we believe could create a good steering wheel and that can improve engagement and retention,” said Gandler.