fuboTV, a sports-focused streaming service, seemed to start the week strong. It has published a report showing record breaking quarterly revenue. News about its sports betting expansion has also drawn many eyes. Despite all these, the company has lost more than 28% of its value in recent days. Many thinks that the growing concerns to sustain the revenue’s direction upward and the inner market competition are only to blame for such value loss.
fuboTV’s stock closed at $29.96 on Friday. It was right $2.15 down for the day. The entire week eventually became an incessant downhill for the company this week. Especially, to be said more specifically, since Tuesday when its shares had to close at $41.92.
An invest community website, Seeking Alpha cited that the decline for the fuboTV has started after Draftkings’ announcement of a deal with a Dish network on Wednesday. Dish has a private streaming service named Sling Tv.
fuboTV executives published net revenue earned in the fourth quarter which amounted $105.1 million. With it, the company reached nine figures for the first time for a quarter. However, the company’s CFO Simone Nardi told analysts about the company’s prediction about the revenue to fall between $101 million and $103 million.
Paid subscribers of the company are expected to run between around 520,000 and 530,000.
Executives Seem Optimistic Despite Increased Losses
fuboTV is observing a bizarre time as for its increase in losses while its revenue is escalating simultaneously. It reported of a $167.8 million loss for the fourth quarter which made the yearly loss amount to $570.5 million.
Despite losses, company executives decided to focus on all the positives the past year brought about. Like, the company held a 73% subscribers’ rise last year. People watched them more than ever while the base also grew. People spent 545 hours watching their videos which is 82% from 2019. The daily watching hour reached to 7.2 hors which marked 12% rise.
Co-founder and CEO David Gandler along with the Executive Chairman Edgar Brofman Jr. wrote in a letter to their shareholders that the company exceeded on all the criteria related to revenue earning.