Disney Star’s sports-related operational loss reportedly grew by 50% to $342 million for the six months ended March 30, up from $228m in the same period in the previous fiscal.
During the time under examination, the Walt Disney-owned company’s operating revenue from sports increased by 40% to $504m, while operating expenses increased by 51% to $786m, per media reports.
In its second-quarter results, Walt Disney noted that increased programming and production expenses at Disney Star were primarily due to higher rights expenses for ICC cricket and, to a lesser degree, IPL cricket programming in the current period compared to the same period last year. Walt Disney operates on a fiscal calendar from October to September.
The increase in ICC cricket programming costs was attributable to an increase in average costs per match and more matches shown, whereas the increase in IPL cricket programming costs was due to more matches aired.
The company’s ad income in the first six months more than quadrupled to $221m, while affiliate revenue fell 3% to $128m.
Disney Star’s sports business reduced its operating loss by 73% to $27m in the quarter ended March 30 due to lower programming and production costs as a result of the non-renewal of Board of Control for Cricket in India rights, which were partially offset by an increase in costs for IPL matches as more matches were aired during the quarter.
The network’s sports revenue plummeted 17% to $105m, but operational expenses fell 48% to $102m. Ad revenue for the quarter climbed by 9% to $37mn, while affiliate revenue stayed flat at $63m.
