Mumbai based Dream Sports, the parent company of fantasy gaming platform Dream11, reported a net loss of ₹479 crore in FY25, marking a rare setback for the company after years of profitability.
The loss was largely driven by one-time tax expenses linked to its domicile restructuring and director-related benefit costs, even as the company’s operating scale declined during the year.
Revenue Declines as Operating Scale Contracts
Dream Sports’ revenue from operations fell 15% year-on-year to ₹6,759 crore in FY25, down from ₹7,934 crore in FY24, according to its consolidated financial statements filed with the Registrar of Companies (RoC).
Platform fees collected from users for participating in contests classified as gross gaming revenue (GGR) remained the company’s primary income source and stood at ₹10,284 crore. After accounting for promotional credits and ₹259 crore from the sale of services and goods, net operating revenue settled at ₹6,759 crore.
The company also earned ₹601 crore in non-operating income, mainly from interest on fixed deposits and investments, taking total income to ₹7,374 crore in FY25.
One-Time Tax Hit and Director Benefits Drive Losses
A key factor behind the loss was a one-time tax expense of ₹575 crore, arising from the cross-border merger of Dream Sports Inc. with India-based Sporta Technologies Private Limited as part of the company’s shift in domicile from the US to India. This cost was booked as an exceptional item.
In addition, Dream Sports recorded ₹778 crore under director benefits, widely understood to be ESOP-related expenses. Excluding this, employee benefit costs remained largely flat year-on-year.
Overall, employee benefit expenses rose 62% to ₹1,673 crore, while advertising and promotional spends remained the largest cost head at ₹3,913 crore, accounting for 58% of total expenses.
Expenses Rise Despite Scale Moderation
Information technology expenses stood at ₹798 crore, while content, processing and other overheads pushed total expenditure up 9% to ₹7,123 crore in FY25.
The combined impact of lower revenue, exceptional tax costs, and elevated director benefits resulted in a swing to losses from a ₹1,295 crore profit in FY24.
Dream Sports reported an EBITDA loss of ₹290 crore, with ROCE and EBITDA margins deteriorating to -6.51% and -4.29%, respectively. On a unit basis, the company spent ₹1.05 to earn every rupee during the year.
Strategic Shift After Real-Money Gaming Ban
The financial setback came ahead of the Indian government’s August 2025 blanket ban on real money gaming under the Promotion and Regulation of Online Gaming Bill, 2025.
Post the regulatory change, Dream Sports has pivoted from real-money fantasy gaming to a broader sports entertainment model, introducing creator-led watch-alongs, fan interaction formats, banter streams, and free-to-play fantasy offerings. It has also entered the wealth tech space with the launch of Dream Money.
Strong Balance Sheet Despite Losses
As of March 2025, Dream Sports reported current assets of ₹3,729 crore, including ₹1,801 crore in cash and bank balances, providing it with sufficient financial cushion amid strategic transitions.
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