Tata Play has reported a significant increase in losses in FY24. This comes as the direct-to-home (DTH) industry grapples with a downturn.
What Happened: The company posted a net loss of ₹354 crore in FY24 compared to the loss of ₹105 crore in the previous year, Economic Times reported citing the company’s regulatory filings. The company’s revenue from operations fell by 4% to ₹4,304 crore while its expenses rose by 1.47% to ₹4,761 crore.
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The DTH business logged a net loss of ₹247 crore in FY24 compared with a net profit of ₹20 crore in the previous year. Revenue from the segment also dropped 7.45% to ₹3,983 crore. The net loss from the broadband business narrowed 13% to ₹108 crore while its revenue increased 27% to ₹329 crore.
Crisil in a recent report stated Tata Play’s revenue from the core DTH business will decrease in the medium term due to modernisation of its subscriber base. This decline will be offset by growth in broadband and over-the-top (OTT) businesses, the report added.
Tata Play was the largest DTH platform in India til December 2023 with 32.71% of the paid DTH market that has 2.07 crore subscribers according to the Telecom Regulatory Authority of India report. Recently, Walt Disney sold its remaining stake in Tata Play to Tata Group.
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