Scatmag.com

January 2020

STAR INDIA : 1336 CR LOSS



Despite a 35% increase in revenues, India's largest entertainment company - Star India slipped into the red in the financial year ended March 2019 with a ₹ 1,216 crore loss as against a net profit of ₹ 287.7 crore a year ago.

Star India booked expenses of ₹ 4,000 crore for its Indian Premier League (IPL) media rights, during the FY ended March 2019.


REVENUES

Revenue from operations stood at ₹ 12,341 crore in FY19 as against ₹ 9,149 crore a year ago.

This included advertising revenues of ₹ 7,311 crore (up 49%) and distribution revenue of 4,128 crore (up 9%). Revenue from other sales and services also doubled to ₹ 902 crore.


Distribution Revenue Rose 9% To ₹ 4,128 Crores




LOSS

Total expenditure jumped 58% to ₹ 13,707 crore from ₹ 8,694 crore a year ago. The hike was mainly a 66% increase in programming and operating cost, a 34% jump in employee cost & 57% spike in marketing cost.

Regional channels saw a 9% drop in net profit to ₹ 271.85 crore, even though regional business revenue grew 11% to ₹ 1445.10 crore.

Star India's operating loss was ₹ 1,336 crore in the fiscal.



IPL expenses were ₹ 4000 crore & Star India's Loss ₹ 1,336 Crores.



IPL LOSSES

Estimates are that Star India recovered around ₹ 1,750 crore as adv revenue from the 11th edition of the IPL. FY2019 was also the first year when Star India had to pay for both - TV & digital rights to the IPL.

Against this, STAR India booked expenses of ₹ 4,000 Crores for the same IPL.


HOTSTAR'S LOSSES

Also contributing to the loss was Star's digital streaming service Hotstar, which reported a net loss of ₹ 558.4 crore on a revenue of ₹ 1,112.7 crore. n


Zee is today, India's most profitable network. In the last fiscal:

 Zee Revenue: ₹ 7,000 Crore & ₹ 1,655 crore profit

 Star Revenue: ₹ 12,341 Crore & Loss of ₹ 1,200 Crore

 Sony Revenue: ₹ 6,000 crore & ₹ 346 crore profit.

 Viacom18 Revenue: 3,665 Cr & ₹ 81 Crore profit