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Morgan Stanley pegs Star India’s value at $11.3 bn

MUMBAI: Star India, the crown jewel in the international entertainment business of Rupert Murdoch’s media conglomerate 21st Century Fox, has been valued at a staggering $11.2998 billion (approx. Rs 75,000 crore) by global financial services firm Morgan Stanley.

According to the report, Star contributed 11.3 per cent to the overall fair market value of 21st Century Fox.

As of June 2015, Star’s earnings from the entertainment business was at $300 million (Rs 1,920 crore).

As reported by earlier, Star India is eyeing an operating profit (EBITDA) of over $500 million by FY18 and is looking to double it to $1 billion by 2020.

Speaking at the second annual MoffettNathanson Media & Communications Summit Star India CEO Uday Shankar had said that Star’s entertainment business had a healthy EBITDA margin of over 30 per cent. “Entertainment business has a very high margin. It is north of 30 per cent margin on which we operate and I think overall business is going to be very well supported by that,” Shankar had said.

He had added that Star’s entertainment business alone is the most profitable and that it is the biggest media and entertainment (M&E) company in India. “Nobody else comes anywhere close to it. The trajectory of this business has been consistently upwards and we feel that we have a set of initiatives in the last 10 years that this business will continue to outpace everybody else,” he stated.

On an earlier occasion, commenting on the India business, the then 21st Century Fox co-COO and current CEO James Murdoch had said, “We love the India business. It has now evolved enormously from Hindi entertainment to regional-language broadcasting and now we are a national platform.”

Describing the sports business in India as a new pillar for the company, he said, “If we keep innovating and investing in putting more creative and innovative content on screen, Star India will become a $1-billion EBITDA business by the turn of the decade.”

The growing value of Star India is important as the American parent company’s ad revenue is slowing from developed markets.

Morgan Stanley sty

One of the leading media and entertainment companies in India, Star India comprises over 30 channels in seven languages received by over 500 million viewers every week across India and 100 other countries.

Its channel portfolio includes Star Plus, Star Gold, Channel [V], Star Jalsha, Star Pravah, Star World, Star Movies, Star Utsav, Life OK Movies OK, Asianet channels and Star Vijay.

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