Text size

FuboTV  stock took a U-turn after markets opened Monday after the sports streaming service issued a disappointing subscriber outlook after seeing an uptick thanks to users who signed up to watch the World Cup.

The company posted revenue of $319 million the fourth quarter ended in December, higher than the prediction by analysts tracked by FactSet of $285.6 million. FuboTV credited the sales to an increase in subscribers as more people bought higher-priced plans and watched the World Cup.

The fourth-quarter loss of 76 cents a share, though, was wider than the 71 cents analysts expected.

FuboTV (ticker:

FUBO

) jumped in premarket trading but was down 15% to $1.98 after markets opened on Monday. Shares have fallen more than 72% over the past year.

The company said its outlook for the first quarter was for up to 1.53 million total subscribers, lower than the 1.73 million analysts expected. For the full year, subscribers are estimated to reach 1.95 million, slightly lower than the 1.97 million expected.

CEO David Gandler, in a call discussing earnings, said the company was being conservative because it raised its prices in the first quarter by $5, a typically light time for sports watching, while it’s unsure if the subscribers who joined only to watch the World Cup will stay on. FuboTV first raised prices during the April-May period last year.

John Janedis, FuboTV’s chief financial officer, said the company was seeing users leave the platform due to the price increase but the churn “has come in below what we would have expected.”

Write to Karishma Vanjani at [email protected]