Fubo TV reported revenue of $44.2 million for the three months ended in June, a 53% spike from the year before. The service hopes to end the current third quarter with 340,000 to 350,000 subscribers. The increase was driven by a 47% increase to more than 286,000 paid users for its core virtual pay-TV service. Subscription and advertising revenue was $39.5 million and $4.3 million last quarter. Monthly active users watched 140 hours per month on average in the period. Its operating expenses were $111.5 million for Q2, the company posted a $99.8 million net loss in the quarter.
In April, OTT startup fuboTV merged with virtual and augmented reality company FaceBank Group, a lesser-known technology outfit that already trades over-the-counter where smaller-cap stocks usually reside. The combined company is now run by fuboTV founder and CEO David Gandler and is branded fuboTV.
FuboTV said subscription revenue in Q2 rose to $39.5 million. With fuboTV increasing the per-month cost of its service in Q2, per-user average revenue rose 8% to $54.79. The increase is up from the 286,126 subscribers the virtual MVPD clocked at the end of March and factors in continuing uncertainty around the return of live sports.
Advertising rose by 71% year over year to $4.3 million. In addition to operating the sports-focused fuboTV virtual MVPD service, the company is also building Fubo Sports Network, a digital channel play that runs on multiple OTT platforms. It’s a similar model to how news startup Cheddar (now owned by Altice USA) was built.
Fubo is currently traded on the over-the-counter, or OTC market, but has filed to list on a major exchange. It’s been working to strengthen its financial position and said it’s recently closed $46 million in equity funding from institutional and private investors, including $26 million in a transaction with Credit Suisse Capital in early July.