Disney reported strong fiscal second-quarter earnings, surpassing Wall Street expectations, thanks to a surge in subscribers for its Disney+ streaming service. The company raised its fiscal 2025 outlook and achieved revenue growth across all three of its business segments. Disney’s shares rose by about 10% in early trading following the announcement.
The company had previously anticipated a decline in Disney+ subscribers during the quarter but instead reported an increase of 1.4 million, bringing its global subscriber base to 126 million. Analysts had forecast 123.35 million subscribers. Disney expects moderate growth in these numbers in the upcoming quarter.
Revenue for Disney’s direct-to-consumer segment, which includes Disney+, rose to $6.12 billion, an 8% increase from the same period last year. This growth was attributed to both higher subscription prices and an increase in subscribers.
For the quarter ending March 29, Disney reported earnings per share of $1.45, adjusted for one-time items, exceeding expectations of $1.20. Total revenue for the company was $23.62 billion, surpassing the forecasted $23.14 billion. Net income for the quarter surged to $3.28 billion, or $1.81 per share, a significant rebound from a loss of $20 million in the same period last year.
Disney’s entertainment segment, which includes traditional TV networks, streaming, and films, saw a 9% revenue increase to $10.68 billion. Despite underperforming films like “Snow White” and “Captain America: Brave New World,” the company benefited from strong content sales and licensing, including ticket sales for upcoming releases like “Mufasa: The Lion King” and “Moana 2.”
The company’s sports segment, primarily driven by ESPN, grew 5% to $4.53 billion, thanks to higher advertising revenue, particularly from additional College Football Playoff games and NFL broadcasts. For fiscal 2025, Disney now expects 18% operating income growth in this segment, higher than the 13% previously forecast.
Revenue for Disney’s experiences segment, which includes parks and resorts, increased 6% to $8.89 billion. Domestic parks saw a 9% revenue rise, while international park revenues dipped by 5%. The company also revealed plans for a new resort in Abu Dhabi.
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