As the legal battle between Fubo and Disney, Fox and WBD continues, third-quarter losses narrow

As Fubo's legal battle against Disney, Fox and Warner Bros. Discovery continues, the pay-TV provider reported better-than-expected third-quarter results.

Revenue rose 20% to $386.2 million in the period ended Sept. 30 compared to the same period last year. Losses narrowed to 17 cents per share from 29 cents a year ago. These revenue and profit metrics were both above Wall Street analysts' expectations.

In a conference call with analysts to discuss results, the company said it would not address Fubu's lawsuit against the companies behind streaming joint venture Venu Sports. Executives addressed this in their quarterly letter to shareholders. The lawsuit is scheduled to go to trial next October. Meanwhile, a federal appeals court is reviewing the U.S. district court's decision to issue an injunction barring Venu from launching on antitrust grounds.

“We are encouraged that the U.S. Department of Justice and the New York Attorney General
General is both considering filing amicus briefs in support of Fubo in the pending appeal
“Injunction before the Second Circuit,” Fubo wrote in the shareholder letter. The letter claimed that the fight was “bipartisan,” with politicians on both sides expressing support, as well as companies like satellite operators DirecTV and Dish Network.

Fubo CEO David Gandler said on the call that the goal of turning a profit starting in 2025 “remains a priority,” noting that the company's adjusted EBITDA increased by $100 million over the past 12 months -Dollar improved.

Gandler said the company sees opportunities in the “rapidly maturing streaming market” and identified the approximately 50 million subscribers of traditional MVPDs as potential customers in the future.