Disney Star India,s Q3 Revenue remains Unchanged, Losses Increased by 45%

The Walt Disney Company reported an income increase to $23.2 billion in the third quarter of 2023-24, up from $22.3 billion in the same period last year.

The income of Star India stood at $ 279 million in Q3 FY24 compared to $277 million in the last year:

According to the company, Star India’s operating income decreased by 45%, rising from $216 million in Q3 FY24 to $314 million in the third quarter of 2024. The increase in losses was ascribed to higher programming and production costs related to higher programming and production costs related to the ICC T20 World Cup, as well as a decline in affiliate income due to lower operative rates. Additionally, the losses were affected by the timing of ICC T20 World Cup, which dominated the growth in advertising revenue.

As per CEO Bob Iger, ESPN’s operating income in the sports segment rose by 4%, but Star India’s results were lower compared to the last year due to the timing of ICC linear rights costs. This led to a 6% reduction in operating income for the sports segment in Q3. A statement from Iger said, “Our performance in Q3 demonstrates the progress we’ve made against our four strategic priorities across our creative studios, streaming, sports, and experiences businesses.”

“This was a strong quarter for Disney, driven by excellent results in our entertainment segment both at the box office and in DTC, as we achieved profitability across our combined streaming businesses for the first time and a quarter ahead of our previous guidance. 

“Despite softer third quarter performance in our Experiences segment, adjusted EPS(1) for the company was up 35%, and with our complementary and balanced portfolio of businesses, we are confident in our ability to continue driving earnings growth through our collection of unique and powerful assets,” he said.

The company also announced that it is beginning to address password sharing, which is expected to drive growth.

“We've announced pricing, and we feel good about all of the value that we're providing to consumers. The product improvements should also reduce churn and keep our consumers with us as they're evaluating their options," said Hugh Johnston, Chief Financial Officer at Walt Disney, in the earnings call.

The streaming service, known as Disney+ Hotstar in India and Southeast Asia, had 35.5 million paid subscribers at the end of the quarter, down from 35 million the previous quarter. The company also reported an increase in the average monthly income per paid subscriber, which rose from $0.70 to $1.05, attributed to higher advertising revenue.