Walt Disney-owned Star India has reported a standalone net loss of Rs 12,548 crore for the financial year ending March 31, 2024. Star India, which is in the final stages of a merger with Reliance Industries-backed Viacom18, last year posted a net profit of Rs 1,465 crore.
However, in FY24, Star India’s operating revenue has dropped by over 6% to Rs 18,587 crore, while expenses soared by 68% to Rs 31,548 crore, largely due to the provision for the ICC contract.
In a regulatory filing, the company attributed this substantial loss to a Rs 12,319 crore provision for an "onerous contract" related to the International Cricket Council (ICC) media rights deal. Star India explained that it expects the revenue from customers for ICC events, as they are broadcasted or streamed, to fall short of the costs involved in broadcasting and streaming.
This anticipated shortfall led the company to estimate a future loss on these media rights totalling Rs 12,319.3 crore as of March 31, 2024. Star India noted that these estimates could change depending on various uncertainties.
The company initially acquired the ICC TV and digital rights for $3 billion, covering a four-year period until 2027.
It later sublicensed the TV rights to Zee Entertainment, which eventually backed out following the collapse of its planned merger with Sony Group Corp’s India units in January. Zee cited financial constraints that prevented it from making a significant investment in high-cost cricket rights like the ICC’s.
In response, Star India initiated arbitration proceedings against Zee’s parent company at the London Court of International Arbitration (LCIA), seeking $940 million in damages.
In a September filing, Zee disputed Star’s claims, noting that the arbitration process was still in its early stages and that the LCIA had yet to determine any liability
