Star India's sports revenue dropped 17 percent to $105 million

Broadcaster Star India's operating loss from the sports business has increased by 50 percent to $342 million for the six months ended March 30, compared to $228 million in the corresponding six months of the previous fiscal, as per reports.

India sports revenue dropped 17 percent to $105 million, while operating expenses for the quarter declined by 48 percent to $102 million. Ad revenue for the quarter increased by 9% to $37 million, even though affiliate revenue remained stagnant at $63 million.

The company's ad revenue for the first six months more than doubled to $221 million, while affiliate revenue declined 3 percent to $128 million.

Star India's sports business narrowed its operating loss by 73 percent to $27 million for the quarter ended March 30 due to lower programming and production costs attributable to the non-renewal of Board of Control for Cricket in India rights, partially offset by an increase in costs for Indian Premier League matches due to more matches aired in the current quarter compared to the prior-year quarter.

The Walt Disney-owned company's operating revenue from the sports business rose 40 percent to $504 million, while operating expenses jumped 51 percent to $786 million.

In Walt Disney said that the higher programming and production costs at Star India were attributable to higher rights costs for ICC and, to a lesser extent, IPL cricket programming in the current period compared to the prior-year period, in its Q2 results.

The increase in ICC cricket programming costs was due to an increase in average costs per match and more matches aired, while the increase in costs for IPL cricket programming was due to more matches aired, it added.

It also said that these increases were partially offset by the comparison to costs for BCCI cricket programming in the prior-year period as we did not renew the rights for the current fiscal year.