VFX Dream 11 gross revenue surpasses Rs 4000 crore, profit drops by 56 per cent -

Dream 11 gross revenue surpasses Rs 4000 crore, profit drops by 56 per cent

In FY 2022, Dream11 continued to expand, with gross revenue increasing by Rs 4000 crore, or over 50 per cent as per RoC filing, reported by YourStory. The Indian fantasy gaming giant has long dominated the Indian market. However, it also had a significant decline in profit of more than 56 per cent in the fiscal year ending in March 2022. However, the 14-year-old company’s net profit decreased by more than 54 per cent in the fiscal year that concluded in March 2022. It had net earnings of Rs 149.76 crore in FY20 as opposed to Rs 327.10 crore in FY21.

Alpha Wave (formerly Falcon Edge), DST Global, D1 Capital, Redbird Capital, Tiger Global, TPG, and Footpath Ventures each contributed $840 million to the business in November 2021.

But fantasy sports tournaments continue to be Dream11’s primary source of income (gross gaming revenue). By charging a fee to enter each competition, it makes significant profits. Fantasy sports competition income for Dream11 was Rs 2554 crore in FY21 and Rs 3841 crore in FY22, an increase of 50.4 per cent.

The cost of marketing and advertising, which includes agreements with professional cricketers as brand ambassadors, is the company’s highest expense. Additionally, for the past three years, it has sponsored the Indian Premier League. From FY21 to FY22, the promotion-related costs increased by 72.8 per cent  in FY2021, from Rs 1249 crore to Rs 2158 crore in .

By transforming Indian sports enthusiasts from passive observers to active participants in sports, the firm hopes to improve the ecosystem.

“Our goal is to bring sports and tech together to build an ecosystem that helps sports grow in India and brings fans closer to the action than ever before through our various brands,” then company said in the filings, reported by the same publication.

The company’s aggressive hiring in FY22 increases expenses by 80.1per cent to Rs 497 crore due to its employee benefits. This is another significant expense.

The total cost of operating Dream11 increased by 70.2per cent to Rs 3762 crore in FY22 from Rs 2210 crore in FY21, including Rs 1050 crore in transaction fees, IT costs, and other expenses.

Recently fantasy sports giant Dream11 has created an intriguing policy by allowing the staff to peacefully enjoy the holidays. Employees will be subject to a heavy fine  of Rs 1,00,000 if they harass coorkers while they are on vacation. As per Dream11’s “Unplug Policy”, employees are allowed to disconnect for a week from work-related emails, texts, calls, and even their coworkers.

VFX