Financial docs are now live at this link:
https://thewaltdisneycompany.com/app/uploads/2025/05/q2-fy25-earnings.pdf
Here are a few sections from the document:
Financial Results for the Quarter:
- Revenues increased 7% for Q2 to $23.6 billion from $22.1 billion in Q2 fiscal 2024
- Income before income taxes increased $2.4 billion for Q2 to $3.1 billion from $0.7 billion in Q2 fiscal 2024
- Total segment operating income(1) increased 15% for Q2 to $4.4 billion from $3.8 billion in Q2 fiscal 2024
- Diluted earnings per share (EPS) for Q2 improved to $1.81 from a loss per share of $0.01 in Q2 fiscal 2024, and adjusted EPS(1) increased 20% for Q2 to $1.45 from $1.21 in Q2 fiscal 2024
Key Points:
- Entertainment: Segment operating income of $1.3 billion, a $0.5 billion increase versus Q2 fiscal 2024
- Direct-to-Consumer operating income increased $289 million to $336 million
- 180.7 million Disney+ and Hulu subscriptions, an increase of 2.5 million versus Q1 fiscal 2025
- 126.0 million Disney+ subscribers, an increase of 1.4 million versus Q1 fiscal 2025
- Linear Networks operating income grew 2%; year-over-year growth includes a comparison to $89 million of operating income in Q2 fiscal 2024 from Star India
- Sports: Segment operating income of $687 million, a decrease of $91 million versus Q2 fiscal 2024
- Higher programming and production costs primarily due to airing three additional College Football Playoff games and an additional NFL game
- Sports revenue increased 5%, reflecting 7% Domestic ESPN revenue growth
- Domestic advertising revenue growth of 29%, reflecting a 16 ppt benefit from a change in format
of the College Football Playoff and airing additional College Football Playoff and NFL games
- Sports operating income was adversely impacted by a write-off due to exiting the Venu joint venture
- Experiences: Segment operating income of $2.5 billion, an increase of $0.2 billion versus Q2 fiscal 2024
- Domestic Parks & Experiences operating income grew 13% to $1.8 billion
- Consumer Products operating income grew 14% to $0.4 billion
- Share Repurchases of $1 billion in the quarter, keeping us on pace to repurchase $3 billion for the year
Guidance and Outlook:
- Q3 Fiscal 2025:
- Entertainment Direct-to-Consumer: Modest increase in Disney+ subscribers compared to Q2 fiscal 2025
- Fiscal Year 2025:
- Adjusted EPS(1) of $5.75, an increase of 16% over fiscal 2024
- Cash provided by operations of $17 billion, a $2 billion increase over prior guidance driven by the deferral of tax payments
- Entertainment: Double-digit percentage segment operating income growth
- Sports: 18% segment operating income growth
- Experiences: 6% to 8% segment operating income growth
- Disney Cruise Line pre-opening expense of ~$200 million, with ~$40 million in Q3 and ~$50 million in Q4
- Equity loss from India JV of ~$300 million driven by purchase accounting amortization
- We continue to monitor macroeconomic developments for potential impacts to our businesses and recognize that uncertainty remains regarding the operating environment for the balance of the fiscal year
Message From Our CEO:
“Our outstanding performance this quarter—with adjusted EPS(1) up 20% from the prior year driven by our Entertainment and Experiences businesses—underscores our continued success building for growth and executing across our strategic priorities,” said Robert A. Iger, Chief Executive Officer, The Walt Disney Company. “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.”
Domestic Parks and Experiences
Operating results at our domestic parks and experiences increased compared to the prior-year quarter primarily due to growth at our domestic parks and resorts and, to a lesser extent, Disney Vacation Club and Disney Cruise Line reflecting:
- Higher volumes attributable to increases in passenger cruise days, theme park attendance, occupied room nights and Disney Vacation Club unit sales. Additional passenger cruise days reflected the launch of the Disney Treasure in the first quarter of the current year
- An increase in guest spending due to higher spending at our theme parks
- Increased costs primarily attributable to the fleet expansion at Disney Cruise Line and inflation
International Parks and Experiences
The decrease in operating income at our international parks and experiences was attributable to Shanghai Disney Resort and Hong Kong Disneyland Resort due to lower theme park attendance and increased costs.
Consumer Products
The increase in operating income at consumer products was due to higher licensing revenue, including a benefit from the release of the licensed game,
Marvel Rivals.
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