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ESPN domestic subscribers remained flat, although revenue per subscriber decreased due to lower advertising numbers. (Mitchell Leff/Getty Images)
Global media giant Disney has published its financial report for the third quarter (Q3) of the 2025 financial year, with its sports segment performing well amid a backdrop of change at the company.
Overall, Disney generated $23.65 billion in revenue over the three months (April to June 2025), up 2% on the same quarter in 2024, with a loss of $50 million.
Quarterly sports segment revenue, however, dropped 5% year-on-year (YoY), though, across the nine months of the current fiscal year, this far revenue (sitting at $13.7 billion) has remained flat when compared to the 2024 fiscal year.
The merger of Star India, responsible for $217 million in revenue in Q3 2024, with Reliance Industries and its subsequent removal from the revenue mix was the primary factor behind the 5% revenue drop, which came despite domestic and international units growing 1% to 2% over that time.
Despite this, operating profit at the sports segment grew significantly over the quarter, up 29% to surpass $1 billion, while nine-month YoY operating profit grew 33% to $1.97 billion.
Disney attributed this growth, in part, to the relatively weak Q3 in 2024, which struggled owing to a $314 million loss at the company’s Star India arm (owing to the cost of its IPL and ICC cricket programming), which has since been merged.
While increased programming costs (spurred in by costlier NBA and college sports media rights) saw ESPN operating income shrink 7% YoY, advertising revenue within the US on the linear network grew 3%, while cross-network programming fees for the broadcast of sports content on the ABC entertainment channel increased as the media enterprise’s highest-profile sports rights drew widespread interest.
On the viewership front, however, while flagship rights remained predictably high, revenue per subscriber fell due to lower advertising revenue (despite subscriber numbers staying flat at around 24.1 million), as did MMA promotion UFC’s pay-per-view buys per event rate.
Looking forward, Disney chief executive Bob Iger and chief financial officer Hugh Johnson commented: “During fiscal Q1, we began recognizing our share of a newly formed India JV in “Equity in the income of investees.” In Q3, we recognized a $50 million loss, and for Q4 we expect to incur a loss of approximately $20 million. As a result, for the full year, we expect to incur a loss of approximately $200 million, primarily due to the impact of purchase accounting.
Disney released its Q3 results in tandem amid a blockbuster week that saw ESPN secure exclusive rights in the US to all premium live events organized by the World Wrestling Entertainment (WWE) promotion, while also announcing details around its new direct-to-consumer streaming service, which will launch in August.
The new DTC service is being launched to coincide with the start of the NFL and college football (American football) seasons, as well as the US Open grand slam tennis tournament.
Also this week, ESPN reached an agreement with NFL Media, the media business of the American football league, to acquire several of its properties in a deal potentially worth billions of dollars.
Under the deal, first reported by news outlet The Athletic, ESPN will acquire NFL Network, the 24/7 channel owned by the league, and NFL Redzone, the channel featuring live-action cut-ins as teams approach the opposition’s end zone, as well as other top NFL Media holdings.
ESPN, owned by Disney, will also receive seven more regular-season games and the NFL’s fantasy football business, among other NFL Media assets.
In return, the NFL will reportedly secure as much as 10% of an equity stake in ESPN, potentially worth billions of dollars.
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