FuboTV Inc. (FUBO) sports streaming site has grown almost 150% since its IPO in October this year. At the same time in recent weeks, as sports tournaments started to return, much of the increase occurred. At ring of the bell on December 2, FUBO’s stock was worth $26.74.
For FuboTV, whose main content is sports competitions, this year was not easy. Many sports competitions were put on hold due to COVID-19, which led to a decline in the number of streaming service subscribers. However several sports leagues in the United States are returning to the fields in the fall, amid the second coronavirus wave. Furthermore, FuboTV presented a positive third quarter report, which also supported stock’s growth.
For $60 a month, FuboTV offers a subscription to watch sporting events. 90% of National Football League games, 100% of National Hockey League games, 88% of Major League baseball games, and 70% of National Basketball Association games are available to subscribers. Included in the subscription are also several premium sports channels. There are a variety of non-sports channels also included in the kit.
The number of FuboTV subscribers fell to 286,000 in June, while it was over 316,000 at the beginning of the year. The company began to recover losses at the end of the summer, however. As a result, sales grew by 71% in the third quarter, and the number of paying subscribers increased by 58%. A 14% increase in monetization was also announced by the company after which the average revenue per subscriber is now $67.7 per month. Ad revenue is still tiny, but this is the fast-growing business of FuboTV, which added 153% in the quarter.
The position of FuboTV continues to strengthen as sporting events gain momentum. Management said in September that it hoped to end 2020 with 410-420,000 paying subscribers. However the company had around 480,000 subscribers in October, and the estimate was increased to 500-510,000 for the end of the year.
FuboTV Inc. (FUBO) is positively influenced by the overall success of streaming platforms that are not directly affected by the pandemic. Furthermore, sports content still remains appealing to a significant number of viewers, despite losing popularity in some regions. FuboTV is at the same time, diversifying its package towards non-sports networks.