Strength in Disney‘s Sports and Experiences divisions propelled the media giant to better-than-expected results in its fiscal second quarter.
Revenue in the period ended increased 7% over the same quarter a year ago, reaching $23.6 billion. Earnings per share, excluding certain items, hit $1.45 on a diluted basis, up from $1.21 in the 2024 period.
The top- and bottom-line figures were comfortably ahead of Wall Street analysts expectations. Investors cheered the report, boosting shares more than 6% in pre-market trading.
The Sports division benefited from the expanded College Football Playoff and an additional NFL game compared with the year-earlier quarter. While production costs rose due to the three extra CFP games, domestic ad revenue in Sports surged 29%.
Experiences also Revenue in Domestic Parks and Experiences and Consumer Products climbed by 13% and 14%, respectively.
Streaming also continues to show progress, with direct-to-consumer operating profit increasing by $289 million to $336 million. The company only a few quarters ago started turning a profit in streaming after a grueling five-year rollout of Disney+.
The streaming flagship hit 126 million subscribers, up 1.4 million from the previous quarter, ahead of the company’s own forecasts. Disney+ and Hulu together (including Hulu + Live TV) increased by 2.5 million to 180.7 million.
At the movie studio, strong carryover business from holiday releases Mufasa: The Lion King and Moana 2 was “largely offset” by the results of Snow White and Captain America: Brave New World, Disney said.
Content Sales/Licensing and Other, the line item encompassing studio returns, saw revenue shoot up 54% from the year-earlier period, to $2.15 billion. The company cited strength from Moana 2 as it moved from theatrical to home entertainment, as well as the timing of episodic deliveries for TV and VOD. Operating income swung from a loss of $18 million a year ago to $153 million.
The quarterly print “underscores our continued success building for growth and executing across our strategic priorities,” CEO Bob Iger said in the earnings release. “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.”
