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The Walt Disney Company (DIS) has reported its financial results for the second quarter of fiscal 2025, showcasing significant growth across key segments. The company’s performance exceeded market expectations, driven by strong results in its Entertainment and Experiences divisions.
 

Disney Reports Double Beat in Q2 FY’25, Revenue Up 7% y/y

In the second quarter of fiscal 2025, The Walt Disney Company (NYSE: DIS) reported robust financial performance, surpassing market expectations. The company achieved a 7% increase in revenues, amounting to $23.6 billion, compared to $22.1 billion in the same period last year. This growth was primarily driven by the Entertainment and Experiences segments, which saw substantial increases in operating income.

The Entertainment segment reported a 61% rise in operating income to $1.3 billion, fueled by improved results in Direct-to-Consumer and Content Sales/Licensing. This performance was further bolstered by a 9% increase in revenues, reaching $10.7 billion. The Direct-to-Consumer division alone saw a remarkable $289 million increase in operating income, reflecting the growing demand for Disney’s streaming services.

In contrast, the Sports segment experienced a decline in operating income, primarily due to higher programming and production costs associated with additional College Football Playoff games and an NFL game. Despite this, Sports revenues increased by 5%, driven by a 7% growth in Domestic ESPN revenue. Overall, Disney’s diluted EPS improved significantly to $1.81 with the adjusted EPS up by 20% to $1.45, surpassing the market expectation of $1.2.
 

The Walt Disney Company Optimistic About Future Performance

Looking ahead, The Walt Disney Company remains optimistic about its future performance, providing strong guidance for the remainder of fiscal 2025. The company anticipates a modest increase in Disney+ subscribers in the third quarter, continuing its trajectory of growth in the Direct-to-Consumer segment. Disney also projects adjusted EPS to reach $5.75 for the fiscal year, representing a 16% increase over the previous year.

The Entertainment segment is expected to achieve double-digit percentage growth in operating income, driven by a robust slate of upcoming theatrical releases and the launch of ESPN’s new direct-to-consumer offering. Moreover, the Sports segment is forecasted to grow by 18% in operating income, reflecting the continued demand for live sports content and strategic programming decisions.

In the Experiences segment, Disney foresees a 6% to 8% increase in operating income, supported by the expansion of the Disney Cruise Line fleet and ongoing projects in its parks and resorts. The company remains vigilant in monitoring macroeconomic developments and their potential impacts on its operations, maintaining a positive outlook for the remainder of the fiscal year.

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