News Disney’s Q1 FY25 Earnings Results Webcast

D

DCBaker

Premium Member
Original Poster
The Walt Disney Company will host a live audio Q&A webcast to discuss fiscal first quarter 2025 financial results beginning at 8:30 a.m. ET / 5:30 a.m. PT on Wednesday, February 5, 2025.

Disney’s Q1 FY25 Earnings Results Webcast - The Walt Disney Company

The Walt Disney Company will host a live audio Q&A webcast to discuss fiscal first quarter 2025 financial results beginning at 8:30 a.m. ET …Read More
thewaltdisneycompany.com thewaltdisneycompany.com
 
MisterPenguin

MisterPenguin

President of Animal Kingdom
Premium Member
MisterPenguin

MisterPenguin

President of Animal Kingdom
Premium Member
Among major market indexes, the Dow Jones Industrial Average closed down 122.75 points Monday, a decline of 0.28% for the day, after falling as much as 309.09 points earlier. The S&P 500 closed down 0.76% and the tech-centric Nasdaq Composite fell 1.20%....​
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Among media stocks that lost ground, Warner Bros. Discovery dropped -2.68%, Comcast fell -1.4% and Paramount Global was down -1.38% after the close of trading. Shares of Trump Media & Technology Group, which operates the Truth Social social media platform, fell 3.26% on the day.​
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But some media companies posted gains: After earlier declines, Netflix stock closed up 0.22% and Disney ended up 0.83% on Monday. Shares of Fox Corp., parent of Fox News, closed up 1.5%.​

variety.com

Trump Tariffs Rattle Markets, Dragging Several Media Stocks Lower

Trump's imposition of tariffs on imports from China, Mexico and Canada rattled markets, with shares of media companies falling lower.
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D

DCBaker

Premium Member
Original Poster
Financial docs are now live at this link: https://thewaltdisneycompany.com/app/uploads/2025/02/q1-fy25-earnings.pdf

Here are a few sections from the document:

Financial Results for the Quarter:
  • Revenues increased 5% for Q1 to $24.7 billion from $23.5 billion in Q1 fiscal 2024
  • Income before income taxes increased 27% for Q1 to $3.7 billion from $2.9 billion in Q1 fiscal 2024
  • Diluted earnings per share (EPS) increased 35% for Q1 to $1.40 from $1.04 in Q1 fiscal 2024
  • Total segment operating income(1) increased 31% for Q1 to $5.1 billion from $3.9 billion in Q1 fiscal 2024 and adjusted EPS(1) increased 44% for Q1 to $1.76 from $1.22 in Q1 fiscal 2024
Key Points:
  • Entertainment: Segment operating income increased $0.8 billion to $1.7 billion
  • Direct-to-Consumer operating income increased $431 million to $293 million
  • Direct-to-Consumer advertising revenue declined 2%; excluding the Disney+ Hotstar service in India(2), Direct-to-Consumer advertising revenue was up 16% vs. Q1 fiscal 2024
  • 178 million Disney+ and Hulu subscriptions, an increase of 0.9 million vs. Q4 fiscal 2024
  • 125 million Disney+ subscribers, a decrease of 0.7 million vs. Q4 fiscal 2024
  • Content Sales/Licensing and Other operating income increased $536 million to $312 million driven by the performance of Moana 2
  • Sports: Segment operating income increased $350 million to $247 million
  • Domestic ESPN advertising revenue up 15% vs. Q1 fiscal 2024
  • Experiences: Segment operating income of $3.1 billion comparable to Q1 fiscal 2024, reflecting a 6 percentage-point adverse impact to year-over-year growth due to Hurricanes Milton and Helene (~$120 million impact) and pre-opening expenses (~$75 million impact in Q1 fiscal 2025) driven by the launch of the Disney Treasure

    Domestic Parks & Experiences operating income declined 5%, reflecting a 9 percentage-point adverse impact to year-over-year growth due to the hurricanes and cruise pre-opening expenses

    International Parks & Experiences operating income increased 28% vs. Q1 fiscal 2024

Guidance and Outlook:
  • Star India deconsolidated in Q1(1):
    • Our India business will contribute $73 million to Entertainment segment operating income in fiscal 2025, compared to $254 million in the prior year; and $9 million to Sports segment operating income, compared to a $636 million loss in the prior year
    • Equity loss from the India JV of $33 million in Q1 primarily due to the impact of purchase accounting; for the full year we expect an equity loss of roughly $300 million driven by purchase accounting
  • Q2 Fiscal 2025:
    • Entertainment Direct-to-Consumer: Modest decline in Disney+ subscribers compared to Q1
    • Sports: Segment operating income adversely impacted by approximately $100 million due to college sports and one additional NFL game, and about $50 million from exiting the Venu Sports JV
    • Experiences: Disney Cruise Line pre-opening expense of approximately $40 million
  • Fiscal Year 2025:
    • High-single digit adjusted EPS(2) growth compared to fiscal 2024
    • Approximately $15 billion in cash provided by operations
    • Entertainment: Double-digit percentage segment operating income growth, with an increase in Entertainment Direct-to-Consumer operating income of approximately $875 million(3)
    • Sports: 13% segment operating income growth
    • Experiences: 6% to 8% segment operating income growth
    • Disney Cruise Line pre-opening expense of ~$200 million
Message From Our CEO:

“Our results this quarter demonstrate Disney’s creative and financial strength as we advanced the strategic initiatives set in motion over the past two years,” said Robert A. Iger, Chief Executive Officer, The Walt Disney Company. “In fiscal Q1 we saw outstanding box office performance from our studios, which had the top three movies of 2024; we further improved the profitability of our Entertainment DTC streaming businesses; we took an important step to advance ESPN’s digital strategy by adding an ESPN tile on Disney+; and our Experiences segment demonstrated its enduring appeal as we continue investing strategically across the globe. Overall, this quarter proved to be a strong start to the fiscal year, and we remain confident in our strategy for continued growth.”

Domestic Parks and Experiences

Domestic parks and experiences’ operating results for the current quarter were unfavorably impacted by Hurricane Milton and, to a lesser extent, Hurricane Helene. As a result of Hurricane Milton, Walt Disney World Resort was closed for a day and we canceled a cruise itinerary.

Operating results at our domestic parks and experiences decreased compared to the prior-year quarter due to:
  • Higher costs primarily due to the fleet expansion at Disney Cruise Line and inflation
  • Lower volumes attributable to declines in attendance, reflecting the impact of the hurricanes
  • Increased guest spending
International Parks and Experiences
  • The increase in operating income at our international parks and experiences was primarily attributable to:
  • Growth in guest spending
  • Higher volumes primarily attributable to an increase in attendance
  • An increase in costs primarily due to new guest offerings
 
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TheMaxRebo

TheMaxRebo

Well-Known Member
Seems like fairly solid earnings and stock is up a bit in premarket trading.

Definitely some focus on the D+ subscriber drop (though was an increase domestically and Hulu u increase more than compensated) and revenue for it grew

Slight earnings decrease in experiences and within that for the domestic parks - hurricanes forcing them to be closed and increased expenses cited as reason there. Increased expenses for cruise line main larger reason
 
lentesta

lentesta

Premium Member
No major all-new rides in 2024, 2025, or 2026? Significantly higher prices based on things that used to be free? Nine different ways to stand in line? Declining domestic attendance?

Oh no. I. am. so. surprised. Who could have seen this coming?

But seriously, other than Lightning Lane and DVC, it's hard to see how they can increase park prices beyond inflation for the next few quarters. I'd also be concerned about park revenue depending on only the wealthiest 10% of American households. They have tons of travel options at that price point. Disney's essentially betting it can be more fun than literally every other travel destination on Earth.
 
MisterPenguin

MisterPenguin

President of Animal Kingdom
Premium Member
Jrb1979 said:
It's hilarious how they use weather as a reason for low attendance. It was too hot, there was a hurricane.
Click to expand...
I just searched the released documents and searched for "heat" and "hot."

I could not find where Disney is blaming anything on "it was too hot."

Where is that claim?
 

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