The Walt Disney Company’s revenues for the Q2FY24 increased to $22.1 billion from $21.8 billion in the quarter ended December 30. However, Disney+ Hotstar saw a decrease of 2.3 million paid subscribers, in the second quarter ending on March 30, 2024.
The number of paid members for Disney+ Hotstar decreased to 36 million, which is 6% less than the 38.3 million paid members in the previous quarter.
The Walt Disney Company also reported a 17% increase in its operating income across all segments, which includes entertainment, sports, and experiences. However, the company also saw a drop in the sports revenue from Star India by 17%. In Q2 FY24, it stood at $105 million, compared to $127 million in the same period of the previous financial year.
The operating loss at Star India dropped by 73% from $99 million in the second quarter of the previous fiscal year to $27 million in the current fiscal year.
The company highlighted that the decrease in operating loss at Star India was due to lower programming and production costs attributable to the non-renewal of Board of Control for Cricket in India rights, partially offset by an increase in costs for Indian Premier League matches due to more matches aired in the current quarter compared to the prior-year quarter
The sports operating income declined slightly compared to the previous year, reflecting the timing impact of College Football Playoff games at ESPN, offset by improved results at Star India, the company stated.
The number of Disney + ‘core’ subscribers (without Disney+ Hotstar) increased to $117.6 million versus $111.3 million in the year-ended quarter. At the same time, Hulu reported 50.2 million subscribers in comparison to 49.7 million in Q1FY24.
“Our strong performance in Q2, with adjusted EPS(1) up 30% compared to the prior year, demonstrates we are delivering on our strategic priorities and building for the future,” said Robert A. Iger, Chief Executive Officer, The Walt Disney Company.
“Our results were driven in large part by our Experiences segment as well as our streaming business. Importantly, entertainment streaming was profitable for the quarter, and we remain on track to achieve profitability in our combined streaming businesses in Q4,” he added.
Concludingly, he stated, “Looking at our company as a whole, it’s clear that the turnaround and growth initiatives we set in motion last year have continued to yield positive results. We have a number of highly anticipated theatrical releases arriving over the next few months; our television shows are resonating with audiences and critics alike; ESPN continues to break ratings records as we further its evolution into the preeminent digital sports platform; and we are turbocharging growth in our Experiences business with a number of near- and long-term strategic investments.”
