live-streaming platform With a rising subscriber base and revenue base, Fubo has the difficult challenge of reconciling these gains with ongoing significant losses and a mountain of debt. The business has a little more room to operate now.
On Tuesday, Fubo announced that it had reached an agreement with a significant debtor to swap $205.8 million in convertible senior notes that were scheduled to mature in 2026 for $177.5 million in fresh debt that would mature in 2029. By doing this, the company’s overall debt was lowered by $28.3 million. In the third quarter of the previous year, Fubo disclosed $887 million in total liabilities.
This alleviates some of the strain on the corporation, which has historically found it difficult to break even on a customer’s purchase and to pay for all of the sports-related content that it offers in its live programming roster. The firm increased its full-year projection despite still reporting a net loss of $105.8 million in the third quarter due to its superior revenue growth and subscriber gains.
The debt exchange was announced by David Gandler, co-founder and CEO of Fubo. “Today’s Exchange represents continued proactive management of Fubo’s capital structure and improves the flexibility of our balance sheet,” Gandler stated.
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Fubo claimed 1.5 million users as of the third quarter, with the great majority of those users being in North America.
Even if the company is starting to gain speed, the uncertainty surrounding the industry is still reflected in the share price. The share price on Wednesday was around $3, a significant decrease from the top of $42.25 reached in January 2021.
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