Fubo TV (FUBO) Signs a Deal With Sinclair Broadcast Group
Fubo TV FUBO recently announced that it partnered with Sinclair Broadcast Group, which will allow it to launch Bally Sports’ 19 regional sports networks to Fubo TV in the coming weeks.
These include Bally Sports Arizona, Bally Sports Detroit, Bally Sports Florida, Bally Sports Great Lakes, Bally Sports Indiana and more. These channels will provide regional sports content to Fubo subscribers, expanding their choice of sports content.
Fubo subscribers will now be able to stream renowned tournaments like Bally Sports Southwest’s Texas High School Football State Championships, Bally Sports Sun’s Lightning Recharge and Bally Sports Ohio’s World Poker Tour.
These exclusive games are expected to gain traction from viewers and add to Fubo’s user base.
Fubo Continues to See Top-Line Growth
Fubo has been enhancing its pipeline of sports content to bolster subscriber rates and subscription revenues.
For third-quarter fiscal 2022, average monthly subscription revenues are up 4% to $64.15 while its North American subscriber base has grown by 31% to 1.231 million homes. The company, however, is in a tough battle with Roku ROKU, which reached 65.4 million active accounts globally in the third quarter of fiscal 2022, a 16% year-over-year increase.
To further aid its top line, Fubo recently bought the rights to stream the FIFA World Cup 2022. However, a streaming outage caused by a cyberattack prevented subscribers from watching the semifinal match between France and Morocco. This caused reputational damage to the company and could even lead to the loss of a few subscribers as they were unhappy with the disruption caused in the middle of such an exciting match.
However, Fubo has other tournaments lined up for the next year, which could be an opportunity for it to prove its efficiency once again and gain the trust of fans.
Fubo Sports Network is set to exclusively air the 2023 PFL Challenger Series from Jan 27, which is an eight-night competition of American mixed martial arts promotion. This is expected to draw an audience as well as sponsors for the network.
This could boost Fubo’s ad revenues even higher after it delivered $22.7 million in advertising revenues for third-quarter fiscal 2022, which marks a 22% increase year over year. Such figures signify solid growth for the company, given the tough macroeconomic conditions that are sweeping away the ad-revenue markets.
Fubo is confident about its upcoming performances for which it has revised its fourth-quarter fiscal 2022 revenue guidance upward to $277.5-$282.5 million in North America, which suggests 22% year-over-year growth while for the rest of the world it is projecting around $5-$6 million.
This could also bolster the shares of Fubo, which have declined 86.7% year to date compared with the Zacks Consumer Discretionary sector, which fell 37.5% in the same time frame.
Zacks Rank & Stocks to Consider
Fubo currently has a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the same sector are Liberty Media FWONK and Hilton Grand Vacations HGV, each sporting a Zacks Rank #1 (Strong Buy).
Liberty Media’s share price decreased 5.5% year to date compared with the consumer discretionary sector, which declined 36.4%. The Zacks Consensus Estimate for earnings is pegged at 10 cents, which has moved up by 42% over the past 30 days.
Hilton Grand Vacations lost 24.3% of its share price year to date. Its earnings estimate is pegged at 77 cents, which has been constant over the past month.
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Hilton Grand Vacations Inc. (HGV) : Free Stock Analysis Report
Liberty Media Corporation (FWONK) : Free Stock Analysis Report
Roku, Inc. (ROKU) : Free Stock Analysis Report
fuboTV Inc. (FUBO) : Free Stock Analysis Report
