Star India valued at $11.3 billion: Morgan Stanley

MUMBAI: Media tycoon Rupert Murdoch has reason to cheer as 21st Century Fox’s India subsidiary - Star India has emerged as a strong contributor to the parent company.


As per a brokerage firm Morgan Stanley’s Year End ‘Fair Market Value’ report for financial year 2016, Star India has been valued at a whopping $11.3 billion, leaving behind its competitors.


The number makes a deeper impact on the parent company’s financial performance worldwide as ad revenue for the media giant from developed markets is slowing.


End of June financial reports saw Star India’s earnings from just entertainment business alone at about Rs 1,920 crore.


An earlier report titled ‘Grow Fox, Grow’ from the same investment firm recognised Star India’s growing profitability as one of the key drivers of healthy acceleration in financial year 2017 for 21st Century Fox. On the basis of their growing revenue, the report estimates Star India to contribute 11.3 per cent to the overall fair market value of the American parent.  The report comes in the wake of a financial statement released by 21st Century Fox highlighting their overall performance and acknowledges the role played by Star Sports in giving Fox a commendable financial year.


In an earlier financial report released by the company, media mogul and 21st Century Fox executive chairman Rupert Murdoch highlighted the importance of their newly acquired sports rights. “The appeal of our new sports rights resonated with consumers globally, whether it was Star Sports in India setting new records with hundreds of millions of viewers for the ICC Cricket World Cup, or the more than 25 million viewers who watched the Women's World Cup Final on FOX,” said Murdoch.


With Star India acquiring broadcast rights of Board of Control for Cricket in India's (BCCI) domestic and international matches in India through 2018, the network has made a conscious effort to optimise their revenues through sports in India.


As per Morgan Stanley’s report, the other key factors that will dictate the Fox's performance in FY17 include TV margin expansion, operating leverage from domestic affiliate revenue growth and growth at film productions, which was valued at $4.7 billion.


On the other hand, the risks to the growth over the next two years are advertising pressures, pay­ TV sub erosion against the strong pricing growth at Fox's networks and capital allocation as forecasters feel that Fox is most likely to lead the industry in the dynamic landscape ahead.

Latest Reads
US$ 4.5 bn expected from IPL rights; SC recommends accounts scrutiny

The Supreme Court on Friday froze all financial transactions between the BCCI and state cricket associations by directing the apex body not to disburse any funds till it resolves to abide by the Justice RM Lodha panel recommendations on reforms by 3 December . The top court ordered that none of...

Television TV Channels Sports
TVS Tyres is co-presenter for Asian Champions Trophy 2016

Continuing its strong connect with sports, TVS Tyres has associated with Asian Champions Trophy 2016 by becoming the co-presenter. The Asian Champions Trophy is one of the premier hockey tournaments, a much sought after annual international competition promising some great hockey action. This...

Television TV Channels Sports
Q2-17: Zee Learn declares maiden interim dividend

The board of directors of the Essel group’s education company Zee Learn Limited (ZLL) have declared a first time ever dividend of 5 percent per equity share of Re 1 each for the quarter ended 30 September 2016 (Q2-17, current quarter).

Television TV Channels Factual & Documentary
Whether BARC action can stop unethical practices?

MUMBAI: Can businesses and industries practise their art of selling fairly although they have 'Fair Practices' training during academic courses, workshops and several ISO and other certifications? There seems to be the fear of the lawman, and not the law in India. If the traffic cop is watching,...

Television TV Channels Viewership
TV Superhighway: beIN, Yaddo, AfricaXP have joined us, says Magine CEO Ambuj Goyal

CANNES; Magine has secured partnerships with four of the industry’s most exciting sports, documentary and entertainment content providers. Partnerships with beIN, the international media group and owner of MIRAMAX; Yaddo, the new documentary streaming service headed up by former head of The BBC’s...

Television TV Channels Factual & Documentary
Colors emerges strong on strength of Naagin I & II

MUMBAI: One of the top rated shows Naagin Season 2 helped Colors reach a top-ranking position.

Television TV Channels GECs
Pakistan Broadcasters Association to oppose PEMRA Indian content ban

MUMBAI: The Pakistan Electronic Media Regulatory Authority (PEMRA) shocked both Pakistan and Indian broadcasters when it issued an order blanking out  all Indian content from Pakistan’s television channels on 19 October.

Television TV Channels GECs
Sony Pix to telecast 'Jurassic World' on 22 October

Sony Pix will take the viewers on a thrilling, adventurous journey with cloned dinosaurs in their Billion Dollar Premiere property. The channel plans to air Jurassic World on 22 October at 1 pm and 9 pm.

Television TV Channels English Entertainment
Sony AXN scripts deal with Pinewood; buys stake in SVOD service Hopster

Folks at Sony Pictures Television (SPT) are in a celebratory mood. Not only has it signed a six-series deal with Pinewood Television but has also acquired a minority stake in the London-based video subscription service for kids content - Hopster.

Television TV Channels English Entertainment

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories