FuboTV (FUBO) boosted both revenue and subscribers in 2024, but the stock fell after the company warned it would likely lose subscribers this quarter, according to its latest earnings report.
The dip in customers is expected to be short-lived as the sports-focused streamer awaits regulatory approval for a proposed merger with Disney-owned Hulu + Live.
Once approved, the deal will create a new sports streaming platform with more than 6.2 million subscribers.
Fubo stock closed 2024 with $1.59 billion in total revenue in North America, up 19% year-over-year (YoY), and 1.67 million subscribers, a 4% YoY increase—both record highs for the company.
For the fourth quarter, Fubo brought in $433.8 million in total revenue in North America, missing a consensus estimate of $445.2 million.The company also narrowed its Q4 net loss to $40.9 million, down from $71 million in the same period in 2023.
Fubo expects a 16% YoY decline in subscribers at the midpoint of Q1. In a letter to shareholders, CEO David Gandler and Executive Chairman Edgar Bronfman Jr. attributed the projected drop to a recent non-renewal with TelevisaUnivision following a pricing dispute.
Analysts at MoffettNathanson also point to seasonal churn, noting that many Fubo subscribers cancel after the NFL season wraps in February.
“We have now seen for years that customers disconnect after the Super Bowl and reconnect for the start of football season,” analysts wrote in a January note.
The Hulu merger opens ‘a range of opportunities’ for Fubo
Investors cheered the proposed merger with Disney’s Hulu + Live when it was announced in January, sending FUBO shares soaring more than 250%.
The deal makes Fubo the second-largest online pay-TV provider, according to The Wall Street Journal, positioning it as a competitor to YouTube, the current leader.
Fubo, which airs more than 55,000 live sporting events annually, will gain access to Disney-owned sports programming, including ESPN and ABC.
“We believe this is a game-changing opportunity to establish a leading streaming company that prioritizes consumer choice, flexible packages, and a cutting-edge experience,” Gandler and Bronfman wrote in the shareholder letter.
Disney is set to own about 70% of the new entity, but Gandler will remain at the helm. Fubo and Hulu will also continue to offer separate services.
The merger brings an end to a lawsuit Fubo filed last year to block the launch of Venu Sports, a planned streaming venture between Disney’s ESPN, Warner Bros. Discovery, and Fox Corp.
A federal judge granted a preliminary injunction in August, ruling that Venu would “substantially lessen competition and restrain trade,” The Wall Street Journal reported.
Under the new deal, Fubo will drop the lawsuit, clearing the way for Venu’s launch. In exchange, Disney, Fox, and Warner Bros. Discovery will make a combined cash payment of $220 million to Fubo.
Disney will also provide Fubo with a $146 million loan in 2026, giving the streamer a significant operational boost next year.
“Increased scale means we have the flexibility to pursue diverse growth strategies, opening up a range of opportunities, both domestically and internationally,” Gandler said in a statement.
Beyond the Hulu deal, Fubo plans to launch a new sports and broadcasting service in the second half of 2025.
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