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FuboTV sports betting operations are yet to provide ROI

Posted on: May 6, 2022, 8:03 a.m.

Last update: May 6, 2022, 8:03 a.m.

FuboTV has taken steps to become a versatile sports and sports betting company. It’s finding some traction, but its latest earnings report shows it still has some work to do.

Fubo TV
FuboTV continues to try to find its place in the world of sports. Its latest financial report shows it is still struggling on some fronts. (Picture: Front Office Sports)

FuboTV announced its financial health for the first time since expanding into Europe. The OTT billed $5.5 million in Spain and France, the only two countries where it operates outside of its home territory. In both markets, it already claims to exceed 305,000 subscribers.

Overall, FuboTV’s revenue was $242 million for the quarter. While that was double what it was a year ago, and a record for the company, the bottom line wasn’t as impressive. High acquisition costs caused its net profit to drop to $135.2 million. This follows a loss of $65.1 million in the first quarter of 2021.

Sports betting does not help yet

FuboTV’s North American operations bolstered the company’s revenue, accounting for $236.7 million of the total. $219.2 million of that came from its streaming business, a 104% year-over-year increase.

Advertising revenue increased by 84.1% over the period. It hit $23.2 million in the quarter as marketing deals returned after COVID-19-induced shutdowns.

An attempt to add sports betting has yet to be as lucrative as FuboTV executives had hoped. The company’s betting business lost money, recording negative revenue of $301,000.

Despite major global challenges, we were able to grow our subscriber base and revenue in North America increased by 81%. With a less robust advertising market than before, we have come under more pressure on our profit margin, but we expect to achieve positive EBITDA in 2025“FuboTV said in a statement.

Spain and France contribute 2.3% of total revenues, which in the first quarter of the year amounted to $236.7 million. This is double the same period last year. However, his losses also doubled to $140.8 million.

The results essentially correspond to the French market. This will be the first full year in which FuboTV will be present in the Spanish and French markets after buying the technology company Molotov in December 2021.

The unification of the two companies is expected to cost $75 million between 2022 and 2025. Globally, according to the company, the group already exceeds one billion subscribers.

FuboTV adds more Spanish content

FuboTV is working to become more appealing to the Spanish-speaking consumer market. For this, he recently partnered with Hemisphere Media Group, a US-based media company that focuses on Latin American markets.

Through this partnership, Hemisphere’s Pantaya is offered as an additional premium service for customers in the United States and Puerto Rico. The deal will allow FuboTV subscribers to access original content in Spanish, such as The game of las llaves (The game of keys) and From viaje con los Derbez (Travel with the Derbez). It will also feature critically acclaimed films, documentaries, concerts and children’s programs in Spanish.

We are very grateful to our partners FuboTV who understand the importance of continuing to serve the Hispanic/Latino community with premium content and are excited to bring Pantaya to new and existing fans of the platform.said Alan J. Sokol, President and CEO of Hemisphere Media Group.

Pantaya features an extensive film library that includes original titles from its own production arm, Pantalion. It also includes titles from major producers and distributors, including Hemisphere, Lionsgate and Televisa.

Hemisphere’s cable networks, including WAPA America, Cinelatino, Pasiones, CentroAméricaTV and Televisión Dominicana, serve the Hispanic market in the United States. They focus on particular segments within the community by offering culturally relevant content.

Hemisphere introduced the platforms earlier this year. They allow users to access the variety of news and programming from Puerto Rico channels, blockbusters and critically acclaimed films from Latin America, Spain and the Caribbean. Content also includes soap operas, international drama series, and sports programming.