Streaming pay-TV operator Fubo beat Wall Street estimates in the second quarter, reporting a loss of 8 cents a share and $382.7 million in total revenue.
The loss improved upon the year-ago quarter’s loss of 19 cents a share, while revenue increased 26%.
Fubo also said it hit 1.45 million paid subscribers, up 24% from the same period in 2023.
The financial results came on the same morning a hearing will begin in federal court in New York in Fubo’s antitrust lawsuit against Disney, Fox and Warner Bros. Discovery. The suit claims that the media companies’ colluded and used their market leverage to plan a streaming joint venture, Venu Sports, that would undercut Fubo. Tuesday’s hearing regarding a preliminary injunction will be held in U.S. District Court for the Southern District of New York. Fubo CEO David Gandler is among those expected to testify.
Advertising revenue was up 14%, which the company said was “the result of efforts to increase visibility within agency holding companies continued during the start of the 2024 upfront season.”
While it remains smaller than internet-delivered pay-TV rivals like YouTube TV or Disney’s Hulu + Live TV, Fubo has posted steady growth. It projects being close to 1.8 million subscribers by the end of 2024.
In the company’s quarterly shareholder letter, it noted the lawsuit, saying it had been filed “in response to
anticompetitive practices by Disney, Fox, and Warner Brothers Discovery harming Fubo, industry
competition, and consumers.”
Fubo increased its full-year guidance, saying it expects to reach 1.725 million to 1.745 million subscribers, with $1.57 billion to $1.59 billion in revenue. The guidance excludes the potential impact of the antitrust legal wrangling, including the launch of Venu Sports.
In its earnings release, Fubo cautioned that there are “many unknowns” related to Venu, which is aiming to come to market in the coming weeks unless it is blocked by a judge from proceeding with its launch.
Fubo shares, which have fallen more than 50% in 2024 to date, jumped 16% in pre-market trading on the earnings report.
