Fubotv Inc (NYSE:FUBO) recently issued third-quarter earnings, beating both the top and bottom lines by solid margins, helped by the 6% bump in CPM (cost per mille), which helped drive revenues 21% higher sequentially.
CEO David Gandler told investors on Friday that they can expect the same kind of language when FuboTV reports fourth-quarter earnings.
What Happened: Gandler, appearing on Benzinga’s “Stock Market Movers” with Mitch Hoch on Friday, told investors that he feels the company is in a strong position with advertising sales and CPM going into the fourth quarter, as it has exposure to different markets.
“This is something I don’t think you’ve really heard from others [in the industry],” Gandler said.
“Probably because of the lack of exposure to gaming, advertising, as well as crypto. We’ve really been strong beneficiaries of political [ads], and as you know, we’re heading into the World Cup. So, again, we feel pretty comfortable with CPM increases, and fill rate, relative to the space.”
The company closed the quarter with $22.5 million booked in ad-revenues, a 21% increase year over year, aided by the 31% year-over-year increase in paying subscribers.
“From an execution perspective, we’re doing all the right things — we’ve added 150 advertisers,” Gandler told Hoch.
Gandler addressed investors concerned with an increase in Fubo’s global expenses as a percentage of revenue year-over-year.
"Everyone in the industry is seeing significant losses — if you take all the Plus services combined on a 12-month trailing basis, I think they’re going to lose about $10 billion. In the short term, there are some packaging issues we’re dealing with, but overall, when I look at the deals, they’re continuing to downtrend.”
On the closure of its sports betting business, Fubo Gaming, and its Fubo Sportsbook venture, Gandler said the macroeconomic environment — rising inflation and mortgage rates — are the reason Fubo rolled it up.
The company has a fiduciary responsibility to all shareholders, he said: “it just wasn’t the right time.”
Read also: Did The Drop In CPI Inflation Impact The Outlook For Interest Rates?
Fubo doesn’t intend to leave sports betting entirely. The CEO said the company is interested in partnering with other sports betting platforms to remain exposed to the market, and added that he’d like to leverage Fubo’s user base to develop those partnerships.
“We’ve had unsolicited reach-outs by a number of players, both abroad and domestic,” Gandler said.
Be sure to check out FuboTV's quote page.
Photo courtesy of FuboTV.
