Disney Delivers Strong Q2 Gains

Revenues at The Walt Disney Company were up 7 percent in Q2 to $23.6 billion, with the company delivering gains across streaming and experiences.

“Our outstanding performance this quarter—with adjusted EPS up 20 percent 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, CEO. “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.”

The entertainment segment delivered revenues of $10.7 billion, a 9 percent increase, with operating income surging by 61 percent to $1.3 billion. Linear network revenues dropped by 13 percent to $2.4 billion, while direct-to-consumer was up 8 percent to $6.1 billion. Content sales and licensing saw a 54 percent boost to $2.1 billion. The company ended the quarter with 126 million Disney+ subs, a 1 percent gain, with 57.8 million in the U.S. and Canada and 68.2 million internationally. Hulu had 54.7 million customers, 50.3 million of which are on the SVOD only plan.

Sports revenues were up 5 percent to $4.5 billion, but operating income fell by 12 percent to $687 million.

Experiences revenues grew by 6 percent to $8.9 billion, with operating income rising by 9 percent to $2.5 billion.