The Walt Disney Company’s quarterly profits for Q1FY25 showed a 5% increase in sales to $24.7 billion, up from $23.5 billion in the same time last year. However, subscriptions to Disney+, the company’s video streaming service, were 125 million, down 0.7 million from Q1FY24.
Disney Reports 5% Revenue Growth in Q1 FY25
In terms of the India business, The Walt Disney Company expects to contribute $73 million to the entertainment segment operating income in fiscal 2025, up from $254 million the previous year, and $9 million to the sports segment operating income, down from a $636 million loss the previous year.
Following the joint venture with Reliance Industries over Disney India’s assets, the House of Mouse reported an equity loss of $33 million in the first quarter, primarily due to the impact of purchase accounting; for the full year, it expects an equity loss of approximately $300 million, driven by purchase accounting.
Direct-to-consumer advertising income decreased by 2%, although excluding the Disney+ Hotstar service in India, it increased by 16% compared to Q1FY24. The Disney+ Hotstar service in India generated roughly $15 million in advertising income in the first quarter of fiscal 2025, compared to $165 million in the first quarter of fiscal 2024.
“Our results this quarter demonstrate Disney’s creative and financial strength as we advanced the strategic initiatives set in motion over the past two years,” said Robert A. Iger, CEO of The Walt Disney Company.
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“In fiscal Q1 we saw outstanding box office performance from our studios, which had the top three movies of 2024; we further improved the profitability of our Entertainment DTC streaming businesses; we took an important step to advance ESPN’s digital strategy by adding an ESPN tile on Disney+, and our Experiences segment demonstrated its enduring appeal as we continue investing strategically across the globe,” said the CEO.
