Dream11, a leading online fantasy sports platform, has disclosed its financial results for the fiscal year 2023, showcasing a significant surge in both revenue and profits.
According to data obtained from the Registrar of Companies (RoC), Dream11’s revenue from operations experienced a substantial increase, soaring from Rs 3,841 crore in FY22 to an impressive Rs 6,384 crore in FY23.
The platform’s profits also witnessed robust growth, posting a remarkable 32.3 percent increase. The parent company, Dream Sports, reported a profit of Rs 188 crore in FY23, compared to Rs 142 crore in the preceding fiscal year.
Entrackr, a source in the financial domain, reported that the fantasy gaming platform’s revenue in FY23 was primarily derived from platform fees collected from its users. The platform’s revenue streams also included a notable Rs 197 crore generated from the gain on the sale of current investments, culminating in a total revenue of Rs 6,581 crore for FY23.
Despite its substantial financial gains, Dream11 faced challenges in the form of a 2.3 times surge in employee benefit costs, amounting to Rs 1,154 crore in FY23.
Dream11 remains the leading revenue-generating fantasy sports company in India, particularly noteworthy given the challenging landscape for gaming firms following the introduction of a 28 percent Goods and Services Tax (GST). In response to the evolving regulatory environment, Dream11 adjusted its operating profit target for FY24, reducing it by 80 percent due to the implications of the new GST regime.
Notably, in September of the previous year, Sporta Technologies, the operator of the Dream11 brand, took legal action by approaching the high court to challenge a showcause notice issued by the Maharashtra state GST department over a GST bill. However, the company later decided to withdraw its challenge against the Rs 1,221-crore GST show-cause notice in the following month.
