DAZN reported Wednesday that it lost $1.3 billion in 2020 due to the reduction and cancellation of live events during the initial few months of the pandemic.
The sports streaming service generated $871 million in revenue in FY2020, a 6% increase year-over-year. In contrast, DAZN saw revenue grow 76% in FY2020 compared to 2019.
DAZN’s financial losses haven’t deterred the sports streaming service from expanding.
- Last June, it agreed to a five-year, $100 million deal with boxing producer Matchroom to broadcast matches in the U.K. and Ireland.
- The company secured shared domestic media rights with Movistar to broadcast La Liga matches in a five-year, $5.6 billion deal last December.
- It is reportedly close to a sublicensing deal with Telefónica to air all La Liga matches next season.
The reported losses follow DAZN’s new financing arrangement with investment firm Access Industries, its majority shareholder, earlier this month. Access Industries agreed to recapitalize $4.3 billion of new equity in DAZN by converting existing shares and retiring shareholder loans.
Access will also acquire $250 million in new shares leaving DAZN debt-free.
Last month, DAZN was reportedly close to a deal with telecom company BT Group to acquire BT Sport for $800 million, but the opportunity to secure its coveted English Premier League rights fell through. BT is now in negotiations with Discovery.