Tata Play’s FY24 net loss widens amid DTH challenges

Tata Play, best known for its direct-to-home (DTH) operations, saw its consolidated net loss widen to Rs 353.8 crore in FY24 from Rs 105.25 crore the previous year, according to data accessed by financial intelligence platform Tofler.

Revenue from operations came in at Rs 4,304.62 crore in FY24, down 4.32% from Rs 4,499.19 crore the previous year amid competitive intensity in the DTH market. Total expenses of Tata Play, in which Tata Sons now owns 70% shareholding, has increased 1.47% to `4,760.55 crore in FY24. Earlier, it stood at `4,691.25 crore for the financial year ended March 31, 2023.

Tata Play’s DTH business slipped into a net loss of Rs 247 crore in FY24 against a net profit of Rs 20 crore in FY23. Revenue from the DTH segment dropped 6.07% to `3,982.57 crore from `4240.04 crore in FY23.

Net loss from the broadband business of Tata Play narrowed by 13% to `108 crore in FY24, while revenue grew 27% to `329 crore during the fiscal.

Analysts tracking the sector said that the pay DTH market continued to see a fall in subscriber numbers as viewers graduate to over-the-top platforms (in urban areas) and DD Free Dish (in rural areas).

The total active subscriber base of Pay DTH service providers, which are four in number, declined to 63.52 million in the December 2023 quarter from 64.18 million in the September 2023 quarter, according to the last available report on the DTH market by the Telecom Regulatory Authority of India (Trai).

Tata Play was the largest platform, with 32.71% of the paid DTH market, which translates to 20.77 million subscribers, according to Trai. Airtel DTH has a market share of 27.76%; Dish TV has a 20.81% market share and Sun TV Direct has an 18.72% share, said Telecom Regulatory Authority of India (Trai).

Tata Play Broadband, which provides service under the Tata Play Fibre brand, has 0.48 million subscribers.

Recently, Temasek-owned Baytree Investments Mauritius sold its 10% stake in Tata Play to Tata Sons for $100 million. Walt Disney is also looking to exit the company by selling its 30% stake.

During the fiscal year (FY24), Tata Play paid Rs 965 crore to Star India as the broadcaster’s share of the maximum retail price net of broadcast incentive. Star India is owned by Walt Disney. It is merging with Reliance-backed Viacom18 as part of a broader joint venture announced by Reliance and Disney earlier this year. Financial Express