GECs
Disney reports substantially better results in Q1 FY 2025
MUMBAI: The Walt Disney Company reported robust Q1 FY25 financial results, driven by growth in its entertainment and experiences divisions and a return to profitability in streaming operations. The company posted a 44 per cent jump in adjusted earnings per share to $1.76, exceeding market expectations of $1.45. Revenue rose by five per cent to $24.69 billion, fuelled by strategic price hikes across streaming services.
The direct-to-consumer (D2C) segment, encompassing Disney+, Hulu, and ESPN+, delivered a $293 million operating profit, recovering from a $138 million loss in the same quarter last year. However, Disney+ saw a marginal decline in subscribers, slipping to 124.6 million from 125.3 million in Q4 FY24. Hulu reported a three per cent growth in its subscriber base, offsetting some losses.
Despite the dip in Disney+ subscribers, D2C revenue increased by nine per cent, reflecting the effectiveness of pricing strategies. The company announced plans to launch ESPN as a stand-alone streaming service by fall 2025, with a focus on delivering comprehensive sports content and digital features.
Disney’s entertainment division recorded double-digit operating income growth, supported by the success of key franchises. Box office revenue saw a rebound, thanks to blockbuster releases and a strong international performance. Upcoming releases are expected to sustain this momentum in the next quarter.
The sports division reported an impressive operating income of $250 million, reversing a $100 million loss from the same period last year. The absence of major cricket events in Q1 and improved operating efficiencies contributed to this turnaround.
The experiences, parks, and products segment remained a key growth driver, bolstered by strong demand for domestic and international parks. Revenue from this segment surged by double digits as travel and leisure activities continued to normalise post-pandemic.
Disney finalised a $220 million merger of its Hulu + Live TV business with FuboTV, taking a 70% ownership stake in the combined entity. CEO Bob Iger confirmed the company’s commitment to further growth in digital entertainment and immersive experiences.
Looking ahead, Disney forecasts high single-digit earnings per share growth for FY25 and double-digit operating income growth in the entertainment division. However, the stock dipped 2.4 per cent following the report, influenced by concerns over Disney+ subscriber declines.
Meanwhile, moving on to its India operations. The mousehouse expects a $300 million equity loss from its Indian joint venture (JV), JioStar, in FY25 due to purchase accounting, according to CEO Bob Iger and CFO Hugh Johnston in the company’s Q1 FY25 earnings commentary. The JV, formed with Reliance Industries (RIL) and Bodhi Tree Systems, marked the merger of Star India, Disney+ Hotstar, and Reliance’s media assets.
Disney, which holds a 37 per cent stake in JioStar, deconsolidated Star India’s results from 14 November 2024. This quarter included just 1.5 months of Star India operations, compared to a full year in fiscal 2024. The company reported a $33 million equity loss from the JV in Q1, primarily linked to purchase accounting.
The JV is projected to contribute $74 million to Disney’s entertainment operating income in FY25, down from $254 million last year, while the sports segment is expected to generate $9 million, recovering from a $636 million loss.
Advertising revenue from Disney+ Hotstar in India fell sharply to $15 million in Q1 FY25, compared to $165 million the previous year. Despite this decline, direct-to-consumer (D2C) ad revenue outside India rose 16 per cent. Disney anticipates D2C operating income to increase by $875 million in FY25, partly due to an improved comparison against a $200 million adverse impact from Disney+ Hotstar in the previous year.
Sports segment income improved to $250 million in Q1, recovering from a $100 million loss in Q1 FY24, which had aired the ICC Cricket World Cup.
The company recognised a $143 million impairment charge and a $0.2 billion non-cash tax charge in Q1 FY25 as part of transaction-related restructuring. Cumulative foreign currency translation losses net of tax amounted to $0.8 billion.
JioStar, valued at $8.5 billion, is 56 per cent owned by RIL and seven per cent by Bodhi Tree Systems. Disney’s move signals a strategic shift in its approach to the Indian market amid evolving media consumption patterns.
The Walt Disney Company reported robust Q1 FY25 financial results, driven by growth in its entertainment and experiences divisions and a return to profitability in streaming operations. The company posted a 44 per cent jump in adjusted earnings per share to $1.76, exceeding market expectations of $1.45. Revenue rose by five per cent to $24.69 billion, fuelled by strategic price hikes across streaming services.
The direct-to-consumer (D2C) segment, encompassing Disney+, Hulu, and ESPN+, delivered a $293 million operating profit, recovering from a $138 million loss in the same quarter last year. However, Disney+ saw a marginal decline in subscribers, slipping to 124.6 million from 125.3 million in Q4 FY24. Hulu reported a three per cent growth in its subscriber base, offsetting some losses.
Despite the dip in Disney+ subscribers, D2C revenue increased by nine per cent, reflecting the effectiveness of pricing strategies. The company announced plans to launch ESPN as a stand-alone streaming service by fall 2025, with a focus on delivering comprehensive sports content and digital features.
Disney’s entertainment division recorded double-digit operating income growth, supported by the success of key franchises. Box office revenue saw a rebound, thanks to blockbuster releases and a strong international performance. Upcoming releases are expected to sustain this momentum in the next quarter.
The sports division reported an impressive operating income of $250 million, reversing a $100 million loss from the same period last year. The absence of major cricket events in Q1 and improved operating efficiencies contributed to this turnaround.
The experiences, parks, and products segment remained a key growth driver, bolstered by strong demand for domestic and international parks. Revenue from this segment surged by double digits as travel and leisure activities continued to normalise post-pandemic.
Disney finalised a $220 million merger of its Hulu + Live TV business with FuboTV, taking a 70% ownership stake in the combined entity. CEO Bob Iger confirmed the company’s commitment to further growth in digital entertainment and immersive experiences.
Looking ahead, Disney forecasts high single-digit earnings per share growth for FY25 and double-digit operating income growth in the entertainment division. However, the stock dipped 2.4 per cent following the report, influenced by concerns over Disney+ subscriber declines.
GECs
Sahara One reports financial results, notes director exit and business realignment
Muted revenues, steady expenses and strategic adjustments shape company’s current phase
MUMBAI: In a tale where the sands seem to be slipping faster than they can be gathered, Sahara One Media and Entertainment Limited has reported another quarter of wafer-thin income and widening losses, even as a boardroom exit adds to the unease.
The company informed the Bombay Stock Exchange that its board, in a meeting held on April 4, approved its unaudited financial results for the quarter ended September 30, 2025. The numbers paint a stark picture. Total income for the quarter stood at just Rs 0.13 lakh, unchanged sequentially and sharply down from Rs 0.26 lakh a year earlier.
Losses, meanwhile, deepened. The company posted a net loss of Rs 24.16 lakh for the quarter, compared to Rs 18.81 lakh in the June quarter and Rs 39.69 lakh in the same period last year. For the six months ended September 2025, the cumulative loss stood at Rs 39.69 lakh, while the full-year loss for FY25 was reported at Rs 60.72 lakh.
Expenses continued to outweigh income by a wide margin. Total expenses for the quarter came in at Rs 24.30 lakh, led by employee benefit costs of Rs 6.51 lakh and other expenses of Rs 17.78 lakh. Earnings per share remained in the red at Rs (0.11) for the quarter.
The balance sheet reflects a company with significant assets on paper but limited operational momentum. Total assets stood at Rs 23,065.57 lakh as of September 30, 2025, broadly unchanged from March 2025. Equity share capital remained steady at Rs 2,152.50 lakh, while total equity was reported at Rs 18,004.85 lakh.
Cash and cash equivalents saw a modest uptick to Rs 6.75 lakh from Rs 4.68 lakh earlier, supported by a positive operating cash flow of Rs 180.01 lakh for the period.
Yet, beneath these numbers lies a more complex narrative. The company’s auditors flagged their inability to obtain sufficient evidence to form a conclusion on the financial statements, citing lack of access to records. They also raised concerns over the company’s ability to continue as a going concern, pointing to insufficient funds, delayed recoveries, and stalled content investments.
Adding to the governance overhang, the company disclosed that Rana Zia has resigned as whole-time director, effective October 16, 2025, citing other professional commitments. The resignation, noted and accepted by the board, also brings an end to her role across company committees.
Regulatory pressures continue to loom large. The Securities and Exchange Board of India has already initiated penal actions for non-compliance with listing norms, with trading in the company’s shares remaining suspended. There is also a risk of promoter demat accounts being frozen.
Legacy legal issues remain unresolved. A substantial deposit of Rs 694,027.88 thousand linked to the long-running OFCD dispute involving Sahara group entities is still under the purview of the Supreme Court of India. Restrictions on asset disposal continue to weigh on the company’s financial flexibility.
Operationally, challenges persist across multiple fronts. Advances worth Rs 1,92,916 thousand given for film content remain stuck, with delays in project completion and uncertain recoverability. The company’s YouTube channel, despite being operational, has generated no revenue for over three years due to compliance lapses. In a further twist, management has indicated that revenues may have been fraudulently diverted through unauthorised changes to its AdSense account, with a police complaint in the works.
There are also missed revenue opportunities. Television content rights continue to be used by a related party despite the expiry of the licence agreement, with fresh negotiations still underway.
For now, Sahara One Media and Entertainment Limited appears caught between legacy disputes and present-day operational hurdles. As losses linger and governance questions mount, the road to recovery looks less like a sprint and more like a slow trudge through shifting sands.
