Zomato to buy Paytm's movie, event ticketing business for ₹2,048 crore

The entertainment ticketing business will continue to be available on the Paytm app during a transition period of up to 12 months.

Updated on: Aug 21, 2024, 22:19:22 IST

By HT News Desk, hindustantimes.com

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One 97 Communications Limited, the parent company of the Paytm brand, announced on Wednesday that it will sell its entertainment ticketing unit, which includes movie and event ticketing, to the food delivery platform Zomato for ₹2,048 crore.

During a transition period of up to 12 months, the entertainment ticketing services, covering movies, sports, and events, will continue to be available on the Paytm app.

"One 97 Communications Limited (OCL)...today announced, that it has entered into definitive agreements for the sale of its entertainment ticketing business that includes movies, sports and events (live performances) ticketing to Zomato Limited," the company stated.

Here is what the company said about the deal

- Refocuses on “Core Payments and Financial Services Distribution” - The entertainment ticketing business achieved a combined revenue of ₹297 crore and an Adjusted EBITDA of ₹29 crore in FY24.

- Developed the movie ticketing business from the ground up and acquired Insider and TicketNew for ₹268 crore between 2017 and 2018, showcasing Paytm's ability to build successful ventures and deliver value to shareholders.

- The entertainment ticketing business, which includes movies, sports, and events, will continue to be available on the Paytm app during a transition period of up to 12 months.

- The transaction generates substantial profits for Paytm, with cash proceeds further bolstering the company's balance sheet.

Built in 2017

Paytm, which has been BookMyShow's main competitor since 2017, is set to transfer its market share to Zomato by selling its 'TicketNew' platform, which handles movie ticket sales, along with its 'Insider' platform, responsible for tickets to live events.

Paytm originally developed its movie ticketing business in-house and later acquired Insider and TicketNew for ₹268 crore between 2017 and 2018.

Now, the company is exiting these businesses to concentrate on its core operations in payments and financial services. This move follows a February directive from the Reserve Bank of India to shut down its banking unit.

For Zomato, the acquisition aligns with its strategy to grow its non-core businesses, which include restaurant table booking services and an events organizing and ticketing unit. These two units, which represented 2% of Zomato's total revenue last year, were also among its fastest-growing segments.

ABOUT THE AUTHOR
HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

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