Sony Pictures flashes 30% revenue jump in FY18
Operating revenue grows 10-fold in 5 years, but much lower than Star India
Sony Pictures Networks India has closed in on Zee Entertainment in terms of revenue in the 2017-18, but remains much behind archrival Star India. The firm’s operating revenue surged more than 30 per cent to ~64.72 billion, compared with Zee’s ~66.86 billion and Star India’s 2016-17 revenue of ~85.25 billion.
Sony Pictures Networks India, the owner of popular television channels such as SET and ESPN, has closed in on Zee Entertainment in terms of revenue in 2017-18 financial year, but remains much behind arch-rival Star India.
The broadcasting company’s operating revenue surged more than 30 per cent to ~64.72 billion, compared with Zee’s ~66.86 billion and Star India’s 2016-17 revenue of ~85.25 billion, regulatory fillings at Registrar of Companies show. Star’s 2017-18 numbers are not available yet. While Sony’s growth in revenue surpassed the previous two years, its net profit in India dipped marginally to ~4.62 billion in 2017-18 from ~4.65 billion a year ago. Star India had registered ~5.58 billion in profit in 2016-17, after posting net losses in the previous two years.
Despite a drop, Zee’s bottom line remained healthier at ~14.78 billion during the past financial year. While both Star and Sony are closely into live broadcasting of sporting events, Zee’s revenue depends more on general entertainment. The drop in net profit for Zee and Sony during 2017-18 may have been due to a rising cost of distribution as cable operators and direct-to-home (DTH) players have increased commissions in recent quarters, experts said.
Data shows Sony’s operating revenue turned 10-fold in the past five years. From less than a fourth of Zee and Star’s individual revenues in 2013-14, its phenomenal rise during the past five years was backed by successful broadcasting contracts in the fields of cricket and football.
Its kitty remained full with money-making broadcasting services for sporting events such as India’s international cricket tours to South Africa, Sri Lanka and West Indies, apart from FIFA World Cup, Champions League and Europe League.
The sole broadcasting rights for much-coveted Indian Premier League (IPL) till 2017 also helped it lift its finances as Sony raked in more than ~13 billion in the 2017 season, sources said.
It had bagged the TV rights for IPL in 2008 for ten years at the cost of ~82 billion, while Star won the rights for over-the-top ( OTT) screening at ~3.03 billion under its Hotstar brand. The dynamics, however, has changed in 2018.
Unlike earlier years, Star holds the broadcasting rights for the IPL for five seasons till 2022. It has bagged the contract for television and OTT rights against a whopping sum of ~163.5 billion, and is estimated to have earned back ~30 billion in the 2018 season alone, including ad revenues in excess of ~16 billion.
On the other hand, Sony has lost its priced jewel IPL but continues to hold the rights of seven international cricket boards, including three big ones — Australia, England and South Africa. It also has rights of FIFA, WWE, UFC, La Liga, among others.