Text size
Dreamstime
Shares of
fuboTV
were plummeting on Friday after the sports streaming service slashed its guidance for North America.
For the full year, fuboTV (ticker:
FUBO
) expects to generate between $1.02 billion to $1.03 billion in revenue in North America, with 1.465 million to 1.485 million subscribers. FuboTV previously had predicted that full-year revenue for North America could range between $1.08 billion and $1.09 billion, and subscribers between 1.5 million to 1.51 million.
The company also forecast a sequential decline in subscribers and revenue for the second quarter of 2022. FuboTV is now expecting between 965,000 and 975,000 subscribers in North America during the June quarter, and is projecting revenue of $220 million to $225 million for the segment. North America delivered $236.7 million in revenue during the first quarter and had 1.05 million paid subscribers. FuboTV said the decline was “consistent with normal seasonal trends” in the business.
The lowered forecast drove the stock down 17% to $3.38 on Friday. It didn’t help that the company posted a first-quarter earnings miss. FuboTV reported a loss of 89 cents a share, wider than consensus calls for a loss of 64 cents. Revenue of $242 million was mostly in line with estimates for $243 million.
Profitability was impacted by an uptick in marketing costs and churn from the company’s decision to raise prices, wrote Barrington Research analyst James Goss. Churn also impacted the company’s second-quarter guidance, fuboTV said.
J.P. Morgan analyst Philip Cusick downgraded the…
..
