MX Player’s loss from continuing operations rose 28% to $97.3 Mn in FY22 from $75.9 Mn in FY21
Total expenses grew to $134.4 Mn in FY22, a 66.5% jump from $80.7 Mn in FY21
While Times Internet sold MX TakaTak to ShareChat in 2022, Amazon is likely to acquire MX Player for over $100 Mn
Times Internet-backed MX Media & Entertainment, the parent entity of OTT platform MX Player, saw its net loss from continuing operations jump 1.2X to $97.3 Mn in the financial year 2021-22 (FY22) from $75.9 Mn in FY21 due to a sharp rise in its marketing expenses.
It must be noted that MX Media & Entertainment sold its short-video platform MX TakaTak to Google-backed ShareChat in February 2022, which was considered as ‘discontinued operations’ in the financial statement for FY22.
Though MX TakaTak had an operating revenue of a mere $1.6 Mn in FY22, its other income, including proceeds received from the sale of the platform, stood at $367.9 Mn, thus helping the Singapore-based parent entity post an overall profit of $72 Mn during the year as against a loss of $147 Mn in FY21.
Revenue from continuing operations jumped 27% to $36.8 Mn from $28.6 Mn in FY21. The OTT platform majorly earns revenue through advertising. It earned $34.7 Mn through advertising in FY22, a 29% jump from $26.8 Mn in FY21. Besides advertising, the company earns revenue from subscription services, sale of branded content, and syndication of original and exclusive content.
Meanwhile, total expenses from continuing operations rose 66.5% to $134.4 Mn from $80.7 Mn in FY21.
Sales and marketing expenses accounted for the biggest chunk of expenses, rising 77% to $47 Mn from $26.6 Mn in the previous year. On an unit economics level, the company spent $1.2 on advertising to earn every $1 from operations.
Amortisation of content assets was the second largest expense for the startup. It spent $41 Mn on amortisation of content assets during the year under review, an increase of 51% from $27.2 Mn in FY21.
The company spent $25 Mn for technology and support in FY22 as against $30.6 Mn in the previous fiscal year.
The startup’s EBITDA margin improved to -134.5% in FY22 from -150% in FY21.
Interestingly, MX Player is likely to be acquired by US-based ecommerce giant Amazon for over $100 Mn as the former’s parent company, Times Internet, is looking to raise capital to overcome its current cash crunch to support its expansion plans. Over the past year, Times Internet has also sold Dineout and MensXP.
MX Player, which was initially developed by Karan Bedi in 2011 as a video player, was acquired by Times Internet in 2018 for about $140 Mn. After getting acquired by Times Internet, MX Player raised $110 Mn in its Series A round from Tencent at a valuation of over $500 Mn.
MX Player competes against the likes of Netflix, Disney+Hotstar, Amazon Prime, Apple TV in the crowded Indian OTT market.
Earlier today, MX Player announced that its Chief Operating Officer Nikhil Gandhi has stepped down from his role and is currently serving his notice period.
