It is not just Kingfisher Airlines that is making losses in liquor-baron Vijay Mallya’s empire.
Mallya’s Royal Challengers Sports, the holding company for the Indian Premier League franchise Royal Challengers Bangalore (RCB), has reported a net loss for the second consecutive financial year, data from the Registrar of Companies reveal.
The company, spearheaded by Mallya’s son Siddartha, reported a net loss of R7.07 crore for the 2011-12 fiscal, widening its loss from R5.42 crore in the previous fiscal. The loss came despite an 82% increase in income to R98.22 crore in 2011-12 from R53.87 crore in the previous year.
Royal Challengers Sports’ accumulated losses as of March 2012 stood at R24.2 crore.
“Ticket sales for the season were up 65% on average per match with two matches having house full sign-ups,” the company said in the annual report.
“To enhance, improve and refresh our ticket and merchandising sales this year, RCB took to Spiritzandmore.com and saw a 14% increase overall to the buying and selling of match tickets an online merchandise sales, respectively.”
Overall merchandising sales for RCB more than doubled as it tied up with Flying Machine and opened up kiosks for the duration of the tournament at UB City.
However, despite improvement in ticket and merchandising, sales the company still has a debt burden of over Rs 100 crore. As on March 31, 2012, Royal Challengers Sports had a total debt (long term borrowings + short term borrowings) of R140.7 crore.
The management is also bullish about the revenue growth for IPL. “The management believes that given the sheer appeal of this format, annualised growth of 20% from 2015 to 2025, 15% annualised growth from 2026 to 2035 and 4% growth, thereafter, is achievable,” RCB said in its annual report.