The fantasy sports portal advertising expenses have gone up 35% in the same period
Sporta Technologies, which owns and operates fantasy sports portal Dream11, has reported a 56.39% growth in total income at Rs 2,705.56 crore for the fiscal ended 31st March, 2021, as against Rs 1,729.93 crore in the previous fiscal. According to the company’s financial data accessed by business intelligence platform Tofler, revenue from operations has jumped 53% to Rs 2551.59 crore from Rs 1670.16 crore in the previous year. The company’s net profit rose 216% to Rs 328.84 crore as compared to Rs 104.01 crore in the previous year. The total expenses have increased 43% to Rs 2,206.15 crore from Rs 1,544.2 crore. Meanwhile, advertising promotional expenses reported a sharp jump of 35% to Rs 1,249.18 crore from Rs 927.82 crore. In August 2020, Dream11 had bagged the title sponsorship to the Indian Premier League (IPL) for Rs 222 crore. Sporta Technologies-owned Dream11 is India’s biggest fantasy sports platform with 14 crore+ users playing Fantasy cricket, football, kabaddi, basketball, hockey, and many other sports. It has partnerships with national and international sports leagues and bodies. The company has associations with many reputed Indian and international cricketers as well. Apart from Dream11, the company also owns FanCode – a premier digital sports platform that personalizes content and commerce for all sports fans, DreamSetGo – a sports experiences platform, and DreamPay – a payment solutions provider. The company recognises the platform fee received from users as revenue also known as Gross Gaming Revenue (GGR). The revenue from fantasy sports is recognised once the users participate in the contest by using the Dream11 Platform. Revenue from the sale of travel packages, commissions, and advertisements is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the government. During the fiscal, the company had allotted 27,745 Equity Shares on October 24, 2020, to its Holding Company Dream Sports Inc by way of a rights issue. Post closure of the financial year, the company allotted 2,933 equity shares on a private placement basis on September 02, 2021, to an investor.