DAZN Reveals $1.36 Billion Loss But Signals Rebound in Subs and Engagement as Model Evolves

January 12 – Sports streaming giant DAZN announced an operating loss of $1.36 billion in 2021, bringing the company's total losses over the past three fiscal years to $5 billion.< /p>

This loss was somewhat mitigated by a recapitalization that wiped out $3.3 billion in loans to parent company Access Industries.

While red ink sounds scary, DAZN has a number of big wins in its arsenal as it solidifies its position in the sports media industry.

DAZN was the top-grossing sports app of 2022 and is available in 225 countries and territories. "The global home of boxing, it is also a market leader in Italy, Japan, DACH (Germany, Austria, Switzerland) and Spain where it holds top-tier domestic football rights, including the Bundesliga, LaLiga and Serie A," said a DAZN. Group 2022 activity report which puts in another light the losses of a service which aims to be very scalable.

The DAZN study highlights that the sports platform broadcast 1.2 billion hours of streaming worldwide on 130 million connected devices in 2022, compared to 1 billion hours and more than 100 million devices in 2021.

This makes DAZN the largest digital sports broadcaster in Europe, having added over 75 rights to the platform in the last 12 months. DAZN has now grown to 15 million paying subscribers – an important cash resource when it comes to borrowing and repaying debt.

DAZN said that as part of its "growth ambitions and diversification strategy, DAZN is moving beyond its position as the first truly global sports streaming platform to become the daily sports destination for fans around the world. future, DAZN will provide fans with everything they want and need - from the largest library of live and on-demand content to news, reviews, merchandise, ticketing, games and betting. DAZN, but will create value for rights holders, business partners and the company."

In 2021, DAZN increased its revenue to $1.56 billion, but on the other hand, with the national broadcast of Serie A as well as the Champions League in Germany, operating costs reached 2 $.9 billion. They spent $1.92 billion on broadcast rights.

Betting and the evolution of NFTs aim to create new sources of income. The beta version of DAZN Bet has launched in the UK, Spain and Italy. The product aims to "refresh the casual betting market and provide customers with a more recreational experience".

The platform also focuses on the development of women's football, making the broadcasting of the Women's Champions League a top priority.

DAZN has also acquired sports broadcaster Eleven Sports. In Brussels, at a La Liga event, Marc Watson, the CEO of Eleven Sports, reiterated that the reason for the merger with DAZN was to create the ultimate and engaging sports streaming platform.

Launched in 2016 and owned by British billionaire Leonard Blavatnik, DAZN has invested billions in sports rights with the aim of becoming "an indispensable part of the lives of sports fans", but even after the sale of the subsidiary Perform to Vista Equity Partners for a reported $1 billion in 2019 and the introduction of cost-cutting measures to address the financial fallout from the global health crisis, the model of offering exclusive live sports on a from market to market at low prices was difficult.

Shay Segev, CEO of DAZN, focused on the recent past and where the company is heading: "The last twelve months have been a very important time for DAZN as we seek to become the daily destination ultimate for sports fans. We experienced healthy growth in our markets, added a significant volume of global and domestic rights to the platform, and significantly increased our revenue by adjusting our core offerings and exploring new revenue streams. Going forward, we have a clear plan in place to deliver the next phase of DAZN's progress. Our goal will be to make the product more accessible, remove additional friction, and improve customer engagement. We're excited to what the future holds."

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