The Walt Disney Company has reported a revenue increase to $23.2 billion from $22.3 billion in the third quarter of 2023-24 compared to prior-year quarter.
The revenue of Star India stood at $279 million in Q3 FY24 compared to $277 in the same quarter previous year.
According to the company, Star India's operating income losses increased by 45% from $216 million in Q3, FY24 to $314 million for the third quarter of 2024.
It has attributed the losses to higher programming and production cost attributable to the timing of the ICC T-20 World Cup.
It also said the loss occurred due to a decrease in affiliate revenue due to lower effective rates and growth in advertising revenue reflecting the timing of the ICC T20 World Cup.
As per CEO Bob Iger, in the sports segment, ESPN operating income grew by 4%, while Star India results were lower versus the prior year driven by the timing of ICC linear rights costs, resulting in the sports segment operating income declining by 6% 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 its just starting with password-sharing which is going to be helpful for driving 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 branded as Disney+ Hotstar in India and Southeast Asian countries, had 35.5 million paid subscribers at the end of the quarter, compared to 36 million in the previous quarter. The streaming platform's average monthly revenue per paid subscriber rose from $0.70 to $1.05 due to higher advertising revenue, the company said.
