Disney Reports 5% Revenue Growth in Q1FY25 Amid Streaming Subscriber Decline

The Walt Disney Company posted a 5% year-over-year revenue increase in Q1FY25, reaching $24.7 billion, up from $23.5 billion. However, its streaming service, Disney+, saw a decline of 700,000 subscribers, bringing the total down to 125 million.

Disney India’s Performance

Disney expects its India business to contribute $73 million to its entertainment segment operating income in fiscal 2025, a sharp decline from $254 million in the previous year. Meanwhile, its sports segment is projected to turn around with a $9 million gain, contrasting with a $636 million loss in fiscal 2024.

Following the joint venture with Reliance Industries, Disney reported a Q1 equity loss of $33 million from its India operations, mainly due to purchase accounting adjustments. The company anticipates a total equity loss of about $300 million for the full year from this deal.

Advertising Revenue Insights

Overall, Direct-to-Consumer (DTC) advertising revenue fell by 2%. However, excluding Disney+ Hotstar in India, DTC ad revenue actually grew by 16% compared to Q1FY24. Notably, Disney+ Hotstar’s advertising revenue dropped significantly, generating just $15 million in Q1FY25, down from $165 million in the same period last year.

CEO’s Perspective

Disney CEO Robert A. Iger highlighted the company’s creative and financial resilience, attributing success to its ongoing strategic initiatives. “In fiscal Q1, our studios delivered the top three movies of 2024, we improved the profitability of our streaming businesses, advanced ESPN’s digital strategy, and continued investing in our global experiences segment,” said Iger.

With strong box office results and strategic digital moves, Disney remains focused on growth despite challenges in its streaming business.