Star India's sports broadcasting business posts $342 million loss in Oct - March period

8 May 2024 , 12:53 PM

Broadcaster Star India’s sports-related operational loss grew by 50% to $342 Million for the six months ended March 30, up from $228 Million in the same period the previous fiscal year.

During the time under examination, the Walt Disney-owned company’s operating revenue from sports increased by 40% to $504 Million, while operating expenses increased by 51% to $786 Million.

In its second-quarter results, Walt Disney noted that increased programming and production expenses at Star India were primarily due to higher rights expenses for ICC cricket and, to a lesser degree, IPL cricket programming in the current period compared to the same period last year. Walt Disney operates on a fiscal calendar from October to September.

The increase in ICC cricket programming costs was attributable to an increase in average costs per match and more matches shown, whereas the increase in IPL cricket programming costs was due to more matches aired, according to the report.

The American entertainment giant also stated that these hikes were largely offset by a comparison to expenditures for BCCI cricket programming in the previous year, as we did not renew the rights for the current fiscal year.

The company’s ad income in the first six months more than quadrupled to $221 Million, while affiliate revenue fell 3% to $128 Million.

Star India’s sports business reduced its operating loss by 73% to $27 Million in the quarter ended March 30 due to lower programming and production costs as a result of the non-renewal of Board of Control for Cricket in India rights, which were partially offset by an increase in costs for Indian Premier League matches as more matches were aired during the quarter.

India’s sports revenue plummeted 17% to $105 Million, but operational expenses fell 48% to $102 Million. Ad revenue for the quarter climbed by 9% to $37 Million, while affiliate revenue stayed flat at $63 Million.

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