Star-Viacom18 likely to post $200 million loss on sports, streaming: Report
Reliance Industries-Walt Disney Company deal to merge Viacom18 and Star India could create a media giant with profitable entertainment, but lossmaking sports and streaming, businesses, a report said.
The Star-Viacom18 merger is expected to generate $2.8 billion in revenue and a loss of $200 million before interest, tax, depreciation and amortisation on a pro forma basis in fiscal 2024, Media Partners Asia (MPA) said in a report.
The two companies had combined revenue of about ₹25,000 crore in the last fiscal year ended March 31, 2023.
The proposed merged entity's entertainment business, including Star Plus and Colors, is likely to be profitable, generating an estimated $600 million in Ebitda on $1.3 billion revenue, the research company said.
The TV sports business, including Star Sports and Sporst18, is projected to post an operating loss of $600 million on revenue of $700 million.
The streaming video segment, which includes Disney+ Hotstar and JioCinema, is expected to generate $800 million in revenue and a $150 million Ebitda loss.
According to MPA, Star India's entertainment business generates a substantial annual operating profit, but is expected to face substantial losses due to its $3 billion TV rights deal with the International Cricket Council and cancellation of a sub-licensing contract with Zee Entertainment.
Star India's sports business posted a wider operating loss of $432 million in FY23, compared with $237 million the previous year. Revenue for the year fell 39% to $729 million.
The combined
