Dream Sports invested nearly Rs4,000 crore in advertising during FY25

Dream Sports, the operator behind the fantasy sports platform Dream11, reported a net loss of ?4,79 crore for the financial year ending March 2025, a sharp turnaround from the ?21,295 crore profit recorded in FY24.

The losses were largely driven by exceptional items, including a one-time tax charge of ?2,575 crore linked to the cross-border merger between Dream Sports Inc. and Sporta Technologies. Additionally, the company booked ?771 crore in directors’ benefits, further impacting the bottom line.

Operating revenue declined 15% year-on-year to ?76,759 crore from ?79,34 crore in FY24. Platform fees, or Gross Gaming Revenue, remained the main revenue driver at ?10,284 crore, although promotional credits and adjustments reduced net operating revenue. Total income, including ?601 crore in non-operating income, reached ?77,374 crore.

The financial downturn came just months ahead of the Indian government’s comprehensive ban on real-money gaming under the Promotion and Regulation of Online Gaming Bill, 2025, enacted in August.

Advertising and marketing continued to dominate expenses, accounting for 58% of total costs at ?3,913 crore in FY25. Employee expenses rose to ?1,673 crore, partly due to ?778 crore in director benefits likely tied to ESOPs. IT costs reached ?798 crore, while content, processing, and other overheads pushed total spending up 9% to ?7,123 crore. Dream11’s return on capital employed fell to -6.51%, with EBITDA margin slipping to -4.29%, resulting in an EBITDA loss of ?7,290 crore. The company spent ?71.05 for every ?1 earned in FY25. As of March 2025, Dream Sports held current assets of ?3,729 crore, including ?1,801 crore in cash and bank balances.

Following the ban on real-money gaming, Dream Sports has shifted toward a broader sports entertainment strategy, expanding into watch-alongs, banter streams, free-to-play formats, and wealthtech offerings through its Dream Money app.