Preity Zinta's KPH Dream Cricket posts Rs 35.26 cr loss in FY11

As franchisees pad up for the next season of cricket's Indian Premier League, Bollywood actress Preity Zinta co-owned KPH Dream Cricket Private Ltd continues to be a loss making venture, with accumulated losses of Rs 68.08 crore in 2010-11 from the past three IPL tournaments.

KPH Dream, which owns IPL team Kings XI Punjab, recorded accumulated losses of Rs 32.82 crore in fiscal 2009-10.

In financial statements filed with the Registrar of Companies, KPH Dream reported a net loss of Rs 35.26 crore for fiscal the year 2010-11, the highest loss suffered by the company since the first instalment of the IPL in 2008.

Kings XI Punjab was reportedly aiming to break even at the end of fiscal 2011.

Instead, the company, in which Zinta and industrialist Ness Wadia hold a 23 per cent stake each, reported total income of Rs 49.88 crore against total expenditure of Rs 85.14 crore for the financial year ended 31 March, 2011.

Total income for fiscal 2011 was also lower than the Rs 94.38 crore in the previous year.

KPH Dream Cricket's major source of revenue was from franchise rights and sponsorship fees, which stood at Rs 27.33 crore and Rs 14.94 crore, respectively. Ticket sales, by comparison, brought in a meagre Rs 5.74 crore in 2010-11.

The company's largest expenses were for depreciation and players cost, including players' fees, at Rs 30.62 crore and Rs 15.93 crore, respectively in 2010-11.

KPH Dream had committed $76 million as franchise cost over 10 years.

According to the shareholding pattern, while Zinta and Wadia hold 23 per cent each, f the rest is owned by Mohit Burman, a director at Dabur India, Karan Paul chairman of Apeejay-Surrendra Group, Colway Investment and Root Investment.

Tags: Colway Investment and Root Investment, earnings, IPL, Karan Paul Chairman of Apeejay-Surrendra Group, Kings XI Punjab, KPH Dream, KPH Dream Cricket Private Ltd, Mohit Burman, Ness Wadia, Preity Zinta