Disney's Indian Subsidiary Star's Losses Soar To $315M In Q3 Amidst Cricket World Cup

This story was first published on the Benzinga India portal.

The Walt Disney Company DIS disclosed its earnings for the last quarter of 2023, revealing a significant increase in operating losses for its Indian unit. The sports division of Star India, a Disney subsidiary, witnessed a 144% surge in losses, amounting to around $315 million.

This substantial increase is largely due to the costs associated with the organization of the 50-over International Cricket Council (ICC) Men's Cricket World Cup 2023. Disney noted that the World Cup led to a rise in programming and production costs, primarily due to the higher average costs per match and the expansion of the match lineup broadcasted during the event.

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Star India operates over ten Star Sports-branded channels in both standard and high-definition formats. The company holds broadcasting rights for several sought-after cricket events.

Despite the considerable operating losses, Star India's sports revenue showcased a remarkable 71% increase, touching $399 million. This growth was powered by effective monetization strategies implemented during the 50-over World Cup. This figure is in sharp contrast to the $233 million revenue reported during the same quarter of the previous year, which was driven by the 20-over World Cup.

Disney attributed the revenue growth to increased advertising revenue, resulting from more units delivered and higher average viewership. However, a decrease in advertising rates partially offset this surge.

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