Shares of Fubo spikes after announcing sports betting unit

(Benzinga) – Recent IPO FuboTV Inc (NYSE: FUBO) shares are flying after reporting strong quarterly earnings, increased guidance and several company announcements.

Earnings: FuboTV reported third-quarter revenue of $61.2 million, up 47% year-over-year. Adjusted revenue was up 71% year-over-year.

Subscription revenue grew 64% year-over-year to $53.4 million in the third quarter. Advertising revenue in the third quarter grew 153% year-over-year to $7.5 million.

The company ended the third quarter with 455,000 paid subscribers, which was up 58% year-over-year. The company’s average revenue per user rose 14% year-over-year to $67.70.

Company’s Growth: FuboTV said it’s positioned well in three megatrends with the shift from traditional television, the shift of TV advertising going to connected devices and online sports betting.

FuboTV is the leading sports first live television service, which streams 90% of NFL games, 88% of MLB games, 100% of NHL games and 70% of NBA games.

FuboTV announced a new partnership with JetBlue Airways (NASDAQ: JBLU) to bring its product to the company’s in-flight entertainment offerings.

A new deal with Lions Gate Entertainment (NYSE: LGFA) will also bring Epix and Starz to the FuboTV channel offerings.

Entering Sports Betting: FuboTV announced it’s entering the online sports betting market.

The company believes this will be complementary to its sports-first offering.

“We believe a significant portion of our subscribers would be interested in online wagering, creating a unique opportunity to drive higher subscriber engagement and open up additional revenue opportunities.”

The company expects to announce more details in the future, but this could be a major catalyst for the company in a huge and growing market.

With the rising number of media partnerships signed with sports betting companies, FuboTV’s announcement could put them on the radar of these companies for future deals.

What’s Next: The company sees fourth-quarter revenue coming in a range of $80 million to $85 million.

Full fiscal year revenue is expected to come in a range of $244 million to $248 million, representing growth of 65% year-over-year.

The company is guiding for fiscal year 2021 revenue to come in a range of $415 million to $435 million, representing year-over-year growth of 70%.

These guided figures do not include any potential revenue from sports betting.

Price Action: Shares of FuboTV are up 23% to $19.25 in after-hours trading.