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Disney
🇺🇸 NYSE:DIS
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Mar 30, 2024

Disney Q2 2024 Earnings Report

Disney's financial performance in Q2 2024 showed mixed results with revenue increase, EPS loss due to goodwill impairments, and strong adjusted EPS growth.

Key Takeaways

The Walt Disney Company reported its Q2 2024 earnings, with revenues increasing to $22.1 billion. However, diluted EPS was a loss of $0.01, though adjusted EPS increased to $1.21. The Entertainment Direct-to-Consumer business was profitable, and Disney+ Core subscribers increased by more than 6 million. The company is on track to generate approximately $14 billion of cash provided by operations and over $8 billion of free cash flow this fiscal year.

Revenues increased to $22.1 billion, up from $21.8 billion in the prior-year quarter.

Adjusted EPS increased to $1.21, a 30% increase compared to the prior year.

Disney+ Core subscribers increased by more than 6 million, and Disney+ Core ARPU increased sequentially by 44 cents.

The Entertainment Direct-to-Consumer business was profitable in the second quarter.

Total Revenue
$22.1B
Previous year: $21.8B
+1.2%
EPS
$1.21
Previous year: $0.93
+30.1%
Disney+ Paid ARMPU
$7.28
Previous year: $6.47
+12.5%
ESPN+ Paid Subscribers
24.8M
Previous year: 25.3M
-2.0%
Hulu Paid Subscribers
50.2M
Previous year: 48.2M
+4.1%
Gross Profit
$7.91B
Previous year: $7.2B
+9.9%
Cash and Equivalents
$6.64B
Previous year: $10.4B
-36.2%
Free Cash Flow
$2.41B
Previous year: $1.99B
+21.1%
Total Assets
$195B
Previous year: $205B
-4.8%

Disney

Disney

Disney Revenue by Geographic Location

Forward Guidance

Disney anticipates softer Entertainment DTC results in Q3 due to Disney+ Hotstar, but expects combined streaming businesses to be profitable in Q4 and a meaningful growth driver in fiscal 2025. The new full year adjusted EPS growth target is now 25%.

Positive Outlook

  • Combined streaming businesses are expected to be profitable in the fourth quarter.
  • Combined streaming businesses are expected to be a meaningful future growth driver.
  • Further improvements in profitability are expected in fiscal 2025.
  • New full year adjusted EPS growth target is now 25%.
  • Company remains on track to generate approximately $14 billion of cash provided by operations and over $8 billion of free cash flow this fiscal year.

Challenges Ahead

  • Softer Entertainment DTC results are expected in Q3, driven by Disney+ Hotstar.
  • Sports operating income declined slightly versus the prior year, reflecting the timing impact of College Football Playoff games at ESPN.
  • Third quarter’s segment operating income at Experiences is expected to come in roughly comparable to the prior year.
  • Lower theatrical distribution results as there were no significant titles released in the current quarter compared to Ant-Man and the Wasp: Quantumania in the prior-year quarter.
  • Higher film cost impairments in the current quarter.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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