Disney's ad revenue faces headwinds in US, but international market shines

The Walt Disney Company posted a decline in advertising revenue in the US market due to lower rates and fewer impressions attributable to lower average viewership

By  Storyboard18May 7, 2025 7:43 PM
Disney's ad revenue faces headwinds in US, but international market shines
Disney+'s average monthly revenue per paid subscriber increased from $7.99 to $8.06

The Walt Disney Company has announced second-quarter and six-month earnings for fiscal year 2025 on Wednesday. The media & entertainment company exceeded analyst expectations, reporting an adjusted earnings per share (EPS) of $1.45 compared to the forecasted $1.21.

However, the Burbank, California-based company posted a decline in advertising revenue in the US market due to lower rates and fewer impressions attributable to lower average viewership. In the international market, the ad revenue witnessed growth because of growth in impressions.

According to the filings, domestic Disney+'s average monthly revenue per paid subscriber increased from $7.99 to $8.06 due to increases in pricing, partially offset by lower advertising revenue.

ESPN saw a growth in advertising, driven by CFP and NFL games. "Sports operating income was adversely impacted by a write-off due to exiting the Venu joint venture," the company said.

The entertainment segment registered an operating income of $1.3 billion, a $0.5 billion increase versus Q2 fiscal 2024. The company's operating income from sports declined by $91 million to $687 million compared to Q2 fiscal 2024.

"Following an excellent first half of the fiscal year, we have a lot more to look forward to, including our upcoming theatrical slate, the launch of ESPN’s new DTC offering, and an unprecedented number of expansion projects underway in our Experiences segment. Overall, we remain optimistic about the direction of the company and our outlook for the remainder of the fiscal year," Robert A. Iger, Chief Executive Officer, The Walt Disney Company, said.

Iger has revised full-year EPS guidance upward to $5.75.

First Published on May 7, 2025 7:43 PM

More from Storyboard18

Advertising

'Advertising market is quite healthy for us': Disney CFO Hugh Johnston

'Advertising market is quite healthy for us': Disney CFO Hugh Johnston

How it Works

Operation Sindoor: India orders 1,000+ daily removals of social media misinformation after Pahalgam Attack

Operation Sindoor: India orders 1,000+ daily removals of social media misinformation after Pahalgam Attack

Brand Marketing

Global Ads Spotlight: 'We are Ayenda' and an inspiring journey of escape from oppression

Global Ads Spotlight: 'We are Ayenda' and an inspiring journey of escape from oppression

Brand Makers

Godrej Consumer stands firm on ad spending, bullish on in-housing capabilities; 'Big believers' says MD Sudhir Sitapati

Godrej Consumer stands firm on ad spending, bullish on in-housing capabilities; 'Big believers' says MD Sudhir Sitapati

Advertising

Dabur slashes ad and publicity expenses, sees 8.3% decline in Q4 FY25 profits

Dabur slashes ad and publicity expenses, sees 8.3% decline in Q4 FY25 profits

Advertising

Timex India steps up ad game in Q4 FY25, plans quick commerce foray

Timex India steps up ad game in Q4 FY25, plans quick commerce foray

How it Works

DOJ turns up the heat on Google, seeks divestiture of ad tech assets

DOJ turns up the heat on Google, seeks divestiture of ad tech assets