Disney would like to stay in India, willing to strengthen hand: CEO Bob Iger

Amid huge speculations about Walt Disney's business in India, CEO Bob Iger has said that their linear business is doing well in India, and they would want to stay in the Indian market.

During a recent earnings call, Iger was asked if Disney might leave the Indian market, which is being highlighted by some as a "consistent money loser".

He said, "In India, our linear business actually does quite well. Yes, it's making money. But we know that other parts of that business are challenging for us and for others and we are looking, I'll call it expensive. I know I've said this before, it always gets me in trouble. But we're considering our options there. We have an opportunity to strengthen our hand. It is now maybe the most populous country in the world or maybe just still second to China and about to pass them."

"We'd like to stay in that market. But we're also looking to see whether we can strengthen our hand obviously, improve the bottom line," he added.

According to several media reports, Disney has held talks with multiple parties, including Reliance Industries, for the sale of its Indian assets.

In the fourth quarter of fiscal year 2023, Disney+ Hotstar reported 37.6 million paid subscribers. This number decreased by 7% from the 40.4 million subscribers it had in the previous quarter that ended on July 1, 2023.

In the quarter that ended on September 30, 2023, Walt Disney made $21.24 billion in revenue, which was higher than the $20.1 billion they earned in the same quarter last year.

Revenue for the year grew 7% compared to the prior year.

The sports business of the company in India, known as Star Sports, had a 29% decrease in its operating income compared to the previous year, which was $12 million. At the same time, its revenue went down by 21% year-on-year to $92 million.

In the fiscal year that ended in September, Walt Disney made more money. Their operating profit went up by 6% to $12.8 billion, and their total income increased by 7% to $88.8 billion. They also earned more from their streaming business, including Disney+ Hotstar, which went up by 12% to $21.9 billion. Moreover, their operating loss got smaller by 35% and reduced to $2.6 million.

Iger highlighted that in terms of advertising, they are actually finding that linear is a little bit stronger than they had expected it would be. It's not back as much as they would like.

"It's still a challenge, but it's not as bad as it had been. So, we've seen some slight improvement. Actually, the tech sector is still somewhat weak. But in general, overall, advertising has improved," Iger said.

"We're finding obviously great demand for addressable advertising. I noted in an interview, I did earlier that we've now put tools in place, so we're using tools on Disney+ to provide advertisers with better targeting, they're starting to work. And in general, sports has been very, very strong. So, as we look at the advertising marketplace right now, while it's not as strong as we would like it to be, it's certainly not as bad as some people think it is, and it's working for us. We continue to expect that our combined streaming businesses will reach profitability in Q4 of FY24, although progress may not look linear from quarter to quarter," he added.

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