Text size

David Gandler


Courtesy of fuboTV


FuboTV

is considering offering sports betting but the live TV streaming platform hasn’t fully worked out its strategy, CEO David Gandler told Barron’s.

FuboTV (ticker: FUBO) provides access to more than 50,000 sporting events from leagues including the NFL, NBA, NHL and the MLB. Sports betting is currently not available on fuboTV, a spokesperson said.

“We think we can enhance the viewing experience with wagering,” Gandler told Barron’s. “We don’t have a strategy fleshed out but it’s an area of increasing interest.” FuboTV is “looking at its options,” Gandler added.

The New York-based company receives “constant interest” from parties in the sports-betting space from an advertising perspective, Gandler said. The CEO declined to disclose who fuboTV is talking to but noted the company already has a relationship, of over one year, with a provider.

In May 2019, fuboTV struck a deal with FanDuel Group, making it the exclusive sportsbook, online casino, horse racing and daily fantasy sports partner of the streaming service. FanDuel, a gaming company, also became the exclusive advertiser on fuboTV for the categories. The deal allowed FanDuel data to be integrated into fuboTV, TechCrunch said at the time.

FanDuel could not immediately be reached for comment.

Gandler spoke to Barron’s from the floor of the New York Stock Exchange. On Thursday, shares of fuboTV were uplisted to the New York Stock Exchange. Fubo had previously traded on the OTCQB Venture Market. When asked why the company made the switch, Gandler said: “This is the first time institutional investors can buy fuboTV [stock]. There is no volume on the OTC so you can’t buy stock.”

With the listing, fuboTV raised $183 million late Wednesday after boosting the size of its underwritten public offering, a statement said. FuboTV ended up

Ladbrokes owner GVC has forecasted higher annual profits following higher online gaming demand. Photo: Simon Dawson/Reuters
Ladbrokes owner GVC has forecasted higher annual profits following higher online gaming demand. Photo: Simon Dawson/Reuters

Ladbrokes and Bwin owner, GVC Holdings (GVC.L), has raised its outlook for annual core earnings after posting a 12% rise in third quarter revenue, helped by the dramatic growth in online gaming and the restarting of major sporting events such as the English Premier League.

The company, which owns brands such as Coral and Eurobet, said full-year earnings before interest, taxes, depreciation, and amortization (EBITDA) is now expected between £770m ($917.91m) and £790m.

Previously, GVC had forecast annual earnings to be between £720m and £740m.

Online gaming volumes have resumed to pre-COVID-19 levels, the company said in a statement on Thursday, reflecting the “strength and diversity of our business model.”

GVC's sales were boosted by online gaming during COVID-19. Chart: Yahoo Finance UK
GVC’s sales were boosted by online gaming during COVID-19. Chart: Yahoo Finance UK

“Like the rest of the UK and Europe’s high streets, GVC’s retail stores were forced to close in lockdown,” said Sophie Lund-Yates, equity analyst at Hargreaves Lansdown, in a note.

She added that “customers that became accustomed to gaming and digital wagering during lockdown have stuck around, and that’s a welcome development. Online activity can be more easily leveraged, meaning it tends to be better news for margins — once a website already exists, a new customer doesn’t really cost anything to service.”

Online net gaming revenue for the three months to 30 September jumped 26% as COVID-19 rules led customers to play more to relieve the pressures of the pandemic.

The business is also in expansion mode, announcing that it is moving forward with the acquisition of Bet.pt, an online gambling operator in Portugal. Gambling companies have been focusing on markets outside the UK as they face tighter regulations in Britain.

READ MORE: EasyJet set for first loss in history

If you’re waiting for an entry point, just pull the trigger, already. This market has more upside. The Fed’s got your back, at least for the rest of this year.

Equity markets started the week in risk-off mood, but Wednesday had the S&P 500 up 1.74% and the MSCI Emerging Markets Index up 1.10%. MSCI China was right in linen, maybe up one bip more. Delayed fiscal stimulus and an ongoing public health crisis is not scaring Wall Street. When Mr. Market hides in the closet, he doesn’t last in there for long.

“Continued extraordinary global monetary support will enable markets to move higher over the medium term,” says UBS CIO Mark Haefele.

With that in mind, global-minded investors and the Barstool crowd should take three actions:

Investors large and small are going to have to take advantage of volatility, and buy on the down days. Put cash to work “right away” is nearly always the best strategy.

“Given the uncertainty of the outlook, some investors may prefer to build up longer positions using near-term volatility,” says Haefele, recommending investors buy the dips.

The Russell 2000 Index, which focuses mainly on mid-cap stocks, is underperforming the MSCI EM, mainly because that American index is loaded with companies facing economic restrictions, while the MSCI EM is loaded with China and large cap stocks that have been a favorite of investors since the pandemic was declared in March.

UBS’ Haefele thinks the next leg of the rally will reflect a return to “more normal” economic conditions, and that should benefit value and cyclical stocks

Greif Inc.’s GEF performance continues to bear the impact of weak demand owing to the coronavirus crisis and weak industrial manufacturing environment. High debt levels also remain a concern.

The Zacks Rank #4 (Sell) company — with a market capitalization of $1.8 billion — is a leading global producer of industrial packaging products and services with manufacturing facilities located in over 40 countries. Shares the company have lost 2.9% against the industry’s growth of 2.8% in a year’s time. Meanwhile, the S&P 500 Index has rallied 12.8% in the same time frame.

Factors Hurting the Stock

Greif expects fourth-quarter fiscal 2020 earnings to be around 66 cents per share implying a decline of 47% and 22% on a year-over-year and sequential basis, respectively. Profits are anticipated to be lower sequentially in the quarter owing to normal business seasonality, higher SG&A expenses, less opportunistic sourcing cost benefits, reduced sales in the high margin filling business in the United States and a sequentially higher tax rate in the fourth quarter.
 

Greif expects adjusted earnings per share in fiscal 2020 between $3.00 and $3.20. The mid-point of the guidance indicates a slump of 22% from the prior year. The company anticipates global macroeconomic conditions to remain volatile throughout the remainder of the fiscal year on account of the ongoing pandemic.

The company continues to face challenging industrial markets across its portfolio and the overall demand environment remains soft. It is witnessing sluggish demand within the textile, industrial paints, coatings and lubricant industries owing to the pandemic. Around 60% of the Rigid Industrial Packaging & Services segment’s revenues are generated from steel drums. The ongoing volume declines in steel drums will continue to hinder the segment’s results.

The company’s total debt to total capital ratio is at 0.69 higher than the industry’s 0.60.