Disney’s Q1FY25 Earnings: Revenue Up 5%, India Business Outlook & Streaming Trends
Mumbai: The Walt Disney Company reported a 5% increase in revenue for Q1FY25, reaching $24.7 billion, up from $23.5 billion in the same period last year. However, subscribers to Disney+ declined to 125 million, marking a 0.7 million drop compared to Q1FY24.
Disney projects that its India operations will contribute $73 million to entertainment segment operating income in fiscal 2025, significantly lower than $254 million in the previous year. In the sports segment, the company expects a $9 million contribution, a major turnaround from the $636 million loss reported in the prior year.
Following its joint venture with Reliance Industries, Disney pegged an equity loss of $33 million in Q1 due to purchase accounting adjustments. For the full year, the company anticipates an equity loss of approximately $300 million from the India JV.
Disney’s Direct-to-Consumer advertising revenue declined 2% in Q1FY25. However, excluding Disney+ Hotstar in India, advertising revenue was up 16% compared to Q1FY24. Disney+ Hotstar’s advertising revenue in India dropped significantly, from $165 million in Q1FY24 to $15 million in Q1FY25.
“Our results this quarter demonstrate Disney’s creative and financial strength, as we continue advancing the strategic initiatives set over the past two years,” said Robert A. Iger, CEO of The Walt Disney Company.
He highlighted strong box office performance from Disney’s studios, which delivered the top three movies of 2024; improved profitability in the Entertainment DTC streaming segment; an ESPN tile launch on Disney+ as part of its digital expansion; and sustained growth in Disney’s Experiences segment, fueled by strategic global investments.