FuboTV retains gaming aspirations despite sportsbook shuttering
Sports streaming firm notes it is exploring ways to use customer base in the gaming space
FuboTV has indicated it still harbours hope of exploring the sports betting and online gaming sector despite pulling its sportsbook last month.
The sports streaming platform pulled its Fubo Sportsbook product in October, just two months after starting a strategic review into the division.
FuboTV said that “multiple parties” had expressed interest in Fubo Sportsbook, but none of these offers would have allowed the company to lower its funding requirements and produce “sufficient returns” for shareholders.
The firm decided to pull the product to reallocate resources to hit its financial targets moving forward.
Fubo Sportsbook was live in Iowa, Arizona and New Jersey but failed to make a dent in the markets against more established operators.
However, in a letter to shareholders, FuboTV touched on the decision to shutter the business and indicated it would continue to explore options in the future.
The letter read: “Our decision to close the Fubo Gaming business and cease operation of our owned-and-operated Fubo Sportsbook was made in support of our profitability goals.
“But, as we continue to focus on data and interactivity to differentiate our [offering], we still believe the integration of gaming and live sports streaming is powerful. As a result, we are exploring ways to optimise our user base in the gaming space without investing our own funds.”
The company offered no further explanation on what this optimisation of its user base would look like.
FuboTV is also continuing to remain cautious with spend as it looks to shift its financial results in a more positive direction.
The firm posted a negative adjusted EBITDA of $92.7m and a corresponding margin of -42.1%, which it said was driven down thanks to its tighter grip on spending and the shuttering of its gaming division.
The shareholder letter continued: “We remain vigilant around overall cost discipline, with a focus on the judicious deployment of capital and cash preservation.
“This approach, combined with our reallocation of resources following the recent closure of our Fubo Sportsbook, strengthens our current liquidity position. We were pleased to see improvements in our adjusted EBITDA margin in the third quarter, which we expect will continue throughout the balance of the year.”