The Walt Disney Company reported its second quarter earnings for fiscal 2025 today, highlighting strong gains in its Experiences segment, which includes the theme parks, Disney Cruise Line, and consumer products. The company’s total revenue for the quarter rose 7% to $23.6 billion, with segment operating income up 15% to $4.4 billion.
Experiences Segment
Disney’s Experiences business generated $2.5 billion in operating income during Q2, up $200 million from the same quarter last year.
- Domestic Parks and Experiences operating income rose 13% to $1.8 billion.
Growth was driven by:
- Higher theme park attendance.
- Increased guest spending.
- Expanded Disney Cruise Line capacity with the launch of the Disney Treasure.
- Improved performance from Disney Vacation Club.
However, expenses also rose due to fleet expansion and pre-opening costs for upcoming ships. About $35 million in pre-opening expenses were booked this quarter, mostly tied to Disney Destiny and Disney Adventure, both expected to enter service later this year.
- International Parks and Experiences saw a 23% decline in operating income. Performance at Shanghai Disney Resort and Hong Kong Disneyland was soft, in line with broader economic concerns in China.
- Consumer Products posted a 14% increase in operating income, primarily due to higher licensing revenue.
Looking ahead, Disney says bookings for the second half of the fiscal year at Walt Disney World remain “solidly above prior year,” and the company still expects Experiences operating income to grow 6% to 8% for the full fiscal year.
"Our outstanding performance this quarter-with adjusted EPS 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."
Company-Wide Performance
- Net income before taxes increased to $3.1 billion from $0.7 billion in Q2 last year.
- Diluted earnings per share rose to $1.81, compared to a $0.01 loss a year ago.
- Adjusted EPS climbed 20% to $1.45.
Segment Highlights
- Entertainment: Operating income rose $0.5 billion to $1.3 billion.
- Direct-to-Consumer: Operating income increased by $289 million to $336 million, as Disney+ and Hulu subscriptions reached 180.7 million combined, up 2.5 million from Q1.
- Sports: Segment operating income fell by $91 million to $687 million, affected by higher programming costs and a write-off related to the Venu joint venture. ESPN domestic revenue was up 7%, while sports advertising revenue jumped 29%.
- Linear Networks: Operating income grew 2% year-over-year.
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