Disney Q3 FY25 revenue rises 2% to $23.7 billion; Star India takes a bite out of profit pie

New Delhi: The Walt Disney Company reported a 2% on-year revenue growth for the quarter ending June 28, 2025, clocking $23.7 billion, ticking up from $23.2 billion in the corresponding quarter the previous year. 

Total segment operating income increased 8% on-year for Q3 to $4.6 billion, rising from $4.2 billion in the same quarter last year. 

Advertising played a mixed role in Disney’s performance. Domestic advertising revenue for ESPN grew 3%, supported by increased rates, although average viewership saw a decline. On the entertainment front, domestic linear networks witnessed a dip in ad revenue, attributed to declining viewership and rate pressure.

Disney’s Entertainment segment posted revenue of $10.7 billion, up 1% year-on-year. However, operating income for the segment declined 15%, falling from $1.2 billion to $1.02 billion, primarily due to weaker results from Linear Networks and Content Sales/Licensing. 

Following the formation of a joint venture with Reliance Industries Limited in November 2024, Star India is no longer consolidated into Disney’s financials. Instead, the company now records its 37% stake as an equity investment. 

For the quarter, Disney reported a $50 million equity loss from the India JV. The Star India transaction also contributed to the steep decline in international operating income from Linear Networks, which fell 92%.

Disney+ subscribers rose to 127.8 million, adding 1.8 million from Q2 FY25, while Hulu reached 55.5 million subscribers. Combined, Disney+ and Hulu now boast 183 million subscriptions globally. Ad revenue across DTC was impacted by lower rates, though that was partially offset by higher impression volumes and pricing growth in some regions.

Commenting on the results, Robert A. Iger, CEO, The Walt Disney Company, said, “We are pleased with our creative success and financial performance in Q3 as we continue to execute across our strategic priorities.” 

Iger added, “The company is taking major steps forward in streaming with the upcoming launch of ESPN’s direct-to-consumer service, our just-announced plans with the NFL, and our forthcoming integration of Hulu into Disney+, creating a truly differentiated streaming proposition that harnesses the highest caliber brands and franchises, general entertainment, family programming, news, and industry-leading sports content.”