Disney Q1FY25 Revenue Up 5% Year-Over-Year

Disney said in its Q1FY25 quarterly earnings that revenue had grown 5% to USD24.7 billion from USD23.5 billion in the same period last year. However, subscribers to the company's video streaming service Disney+ stood at 125 million, down 0.7 million from Q1FY24.

The Walt Disney Company anticipates to generate USD73 million in operating income from its entertainment sectors in fiscal year 2025, reduced from USD254 million in the previous year. Additionally, the company forecasts a USD9 million contribution to operating income from its sports sector, a significant development from the USD636 million loss reported in the last year.

In its earnings report, Disney noted an equity loss of USD33 million in Q1 from its joint venture with Reliance Industries over Disney India's assets, mainly due to the effects of purchase accounting. For the full year, Disney anticipates an equity loss of approximately USD300 million, also driven by purchase accounting.

Direct-to-consumer advertising revenue fell by 2%, but excluding the Disney+ Hotstar service in India, it increased by 16% compared to Q1 FY24. The Disney+ Hotstar service in India generated approximately USD15 million in advertising revenue in Q1 FY25, compared to USD165 million in Q1 FY24.

Robert A. Iger, chief executive officer, The Walt Disney Company stated, “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.”

“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,” he added.