The Walt Disney Company reported its earnings for the quarter ended December. As per the filing, the India unit of the company faced a 144% surge in operating losses within its sports division, amounting to $315 million (around ₹2,550 crore) for the quarter concluding in December 2023.
This notable uptick is attributed primarily to the hosting of the 50-over ICC Men’s Cricket World Cup 2023.
The House of Mouse added that the World Cup escalated programming and production costs. These expenses are attributed to higher average costs per match and an expanded match lineup broadcasted during the event.
Star India, a subsidiary of Disney, has over 10 Star Sports-branded channels in both standard and high definition. Notably, the conglomerate possesses telecast rights to several coveted creating events.
Despite the substantial operating losses, Star India’s sports revenue demonstrated an impressive 71% surge, reaching $399 million (around ₹3,200 crore), buoyed by robust monetization strategies deployed during the 50-over World Cup. This starkly contrasts with the $233 million (around ₹1,850 crore) revenue recorded during the same quarter of the previous year, which was propelled by the 20-over World Cup.
The entertainment giant attributed the revenue growth to heightened advertising revenue stemming from increased units delivered and higher average viewership. However, this surge was partially offset by a decrease in advertising rates.
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