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 (NYSE: 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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