Shares of sports-first streaming service fuboTV Inc. (NYSE: FUBO) declined about 0.2% in the regular trading session on Thursday, but gained 7.6% in the extended session.
What Happened: FuboTV said Thursday it has acquired the exclusive live streaming rights to the Qatar World Cup 2022 Qualifying matches of South American Football Confederation. Terms of the deal, a partnership with the 10 South American teams’ rights holders, were not disclosed.
Through the new partnership, FuboTV has also acquired the exclusive OTT live streaming rights only for the remaining 70 matches, including Qatar World Cup 2022 Qualifiers. In addition, the company acquired the re-air and highlight rights as well as rights to matches featuring both English and Spanish commentary.
Why It Matters: FuboTV has seen strong growth in revenue and subscribers in recent quarters. In March, FuboTV reported an 83% year-over-year surge in fiscal 2020 revenue and 73% growth in paid subscribers compared to the prior year.
The company also highlighted its plans to launch sports betting by the fourth quarter of fiscal 2021 following its acquisition of Vigtory, a sports betting and interactive gaming company. FuboTV aspires to leverage its subscriber base and sport fan customers into a sports betting platform.
FuboTV has access to three states with legalized sports betting following its deals with Casino Queen in Iowa, and with Caesars Entertainment Inc. (NASDAQ: CZR) in Indiana and New Jersey. The company also has agreements with Major League Baseball and the National Basketball Association to become authorized gaming operators for each league.
In March, Needham analyst Laura Martin laid out the bull case for FuboTV. She noted that wagering would add a third revenue stream for FuboTV and lower the company’s risk through diversification. The company already has two revenue streams, advertising and subscriptions.
The analyst also expects FuboTV to benefit from eMarketer estimates for growth in connected TV (CTV) homes in the U.S. to 110 million by 2023 from 104 million in 2020.
Price Action: FuboTV closed almost 0.2% lower on Thursday at $20.70. but gained 7.6% in the after-hours session to $22.28.
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