It looks like cable replacement company fubo TV is progressing along quite well this year as it has shown a major increase in subscribers followed by a predictable rise in profits. The company boasts 287,316 subscribers which is up 37% from where it was last year at this time. The company has been adding customers even as the streaming world has been seeing growth in services. Its customers streamed 107.2 million hours of content in the first quarter of the business year marking a 124% increase in hours from the same period in 2019. Some other highlights include;
- Q1 2020 revenue increased 78% YoY to $51.0 million, driven by growth in our subscriber base, subscription ARPU and advertising sales.
- fuboTV’s revenue is primarily driven by monthly subscription and advertising sales:
- In Q1 2020 subscription revenue increased 74% YoY to $46.4 million.
- The advertising component to our revenues continued to rapidly grow and in Q1 2020 reached $4.1 million, up 120% YoY.
- Adjusted Contribution Margin was positive reaching 3.0% in Q1 2020, up from negative (13.6)% in 1Q 2019
- fuboTV users (paid and trial/free) streamed 107.2 million hours in Q1 2020, a 124% increase YoY.
- fuboTV’s monthly active users (MAUs) watched 120 hours per month on average in the quarter, a 52% increase YoY.
- We ended Q1 2020 with 287,316 paid subscribers, up 37% YoY.
- Average Revenue Per User (ARPU) increased 25% YoY to $54.16.
For a full accounting of the companies performance see the full investor letter to fubo shareholders here.
The true test for fubo TV and other streaming services is how well they will hold up without major sports on TV. The company built itself on the idea of being a sports centered service. And though major US leagues are working on plans to get seasons back in action or even start after delays there is a chance that things could again grind to a stop if COVID-19 cases begin to rise within the ranks of pro sports teams.
Decisions on NCAA competition are pending going into the fall kickoff of college football.