TYSONS, Va. - TEGNA Inc. (NYSE: NYSE:TGNA), an American media company, has announced a multi-year agreement with FuboTV Inc. (NYSE: NYSE:FUBO), a sports-focused live TV streaming service. The deal grants FuboTV subscribers access to live sports telecasts from select TEGNA-owned stations.
As part of the agreement, FuboTV has started offering live broadcasts from KFAA in Dallas. Stations KONG in Seattle and KTVD in Denver are slated to follow suit shortly. This arrangement will allow FuboTV customers to watch a significant number of local sports games, including over 70 Dallas Mavericks basketball games on KFAA, a similar number of Seattle Kraken hockey games on KONG, and 20 Denver Nuggets basketball and 20 Colorado Avalanche hockey games on KTVD.
Brad Ramsey, TEGNA's Senior Vice President of Media Operations, expressed enthusiasm about the partnership, emphasizing the goal of providing uninterrupted access to local sports for fans. He highlighted the synergy between FuboTV's innovative streaming platform and TEGNA's collaboration with NBA and NHL teams to ensure fans can catch every moment of the action.
TEGNA operates 64 television stations in 51 U.S. markets, reaching approximately 100 million people each month through various platforms, including the web, mobile apps, streaming services, and linear television. The company is known for its commitment to serving local communities with trustworthy journalism and engaging content.
This partnership with FuboTV represents a strategic move by TEGNA to expand its distribution channels and enhance the visibility of its local sports broadcasting. It also underscores the growing trend of traditional media companies collaborating with streaming services to meet the evolving preferences of viewers.
The financial terms of the agreement were not disclosed in the press release. This development is based on a press release statement from TEGNA.
In other recent news, FuboTV, a sports-centric streaming service, reported a 26% increase in North American total revenue for Q2 2024, reaching $382.7 million. The company also saw a 24% growth in paid subscribers, now totaling 1.45 million, and its advertising business experienced a 14% revenue boost, amounting to $25.8 million. FuboTV has expanded its offerings by launching BKFC TV, a free ad-supported streaming TV channel from Bare Knuckle Fighting Championship. The company introduced its Multiview feature on select Roku (NASDAQ:ROKU) devices, allowing subscribers to watch up to four live channels simultaneously, and launched a new advertising format, The Triple Play, for its connected TV service. FuboTV has also announced the introduction of standalone premium subscription services. On the legal front, FuboTV obtained a preliminary injunction against a joint venture between The Walt Disney Company (NYSE:DIS), FOX Corp., and Warner Bros. Discovery (NASDAQ:WBD), temporarily reducing competition. Roth/MKM maintained a neutral rating on FuboTV, adjusting their price target to $2.00 from $1.75, while Seaport Global Securities downgraded the stock from Buy to Neutral.
InvestingPro Insights
FuboTV's partnership with TEGNA aligns with the company's focus on sports-centric streaming, potentially bolstering its subscriber base and revenue growth. According to InvestingPro data, FuboTV has shown impressive revenue growth, with a 29.03% increase in the last twelve months as of Q2 2024, reaching $1.52 billion. This growth trajectory is further supported by a 25.01% quarterly revenue increase in Q2 2024.
Despite these positive indicators, investors should be aware of some challenges. An InvestingPro Tip highlights that FuboTV is "quickly burning through cash," which could be a concern given the competitive nature of the streaming industry. Additionally, the company "suffers from weak gross profit margins," with InvestingPro data showing a gross profit margin of just 8.95% for the last twelve months as of Q2 2024.
On a more optimistic note, FuboTV has seen a "significant return over the last week," with a 13.12% price increase. This short-term momentum could be indicative of positive market sentiment surrounding developments like the TEGNA partnership.
For investors seeking a more comprehensive analysis, InvestingPro offers 14 additional tips for FuboTV, providing a deeper understanding of the company's financial health and market position.
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