Subscriptions surge to help reduce Zee’s sports losses

Indian pay-television operator Zee expects to halve its sports division’s operating losses in the 2012-13 financial year due to a significant rise in subscription revenues, according to the Indian Television website.

The report quoted a Zee source as saying that the sports division’s losses were likely to be about Rs700 million (€10 million/$12.6 million) for the 2012-13 financial year. In April, the division reported a loss of Rs1.48 billion in the 2011-12 financial year, citing the weakening rupee for the worse-than-expected figures.

“Ten Sports has seen a 13-per-cent increase in content cost due to the softening of the Indian currency,” the source said.

“The distribution revenues should see an upside,” the source added. “International syndication, including Pakistan and the Middle East, should look up. The cricketing line-up is also reasonable. There could also be the possibility of a series between India and Pakistan in the fiscal [year].”

Pan-Asian broadcaster Ten Sports, which is owned by Zee, is expecting to generate about Rs800 million in advertising sales during its live coverage of the India national cricket team’s series in Sri Lanka, starting this month. A Pakistan v India series, which has not been scheduled yet, would provide a significant further boost to Zee’s financial outlook.

During the 2012-13 financial year, Ten Sports will also broadcast the Sri Lanka cricket team’s home series against England, Pakistan, New Zealand and Bangladesh, West Indies’ home series against Australia, New Zealand and Zimbabwe, South Africa’s home series against New Zealand and Pakistan and Zimbabwe’s home series against Bangladesh and Pakistan.