Disney(US:DIS)2025-02-05 11:42Financial Performance - Revenues increased 5% for Q1 fiscal 2025 to $24.7 billion from $23.5 billion in Q1 fiscal 2024[6] - Income before income taxes increased 27% for Q1 to $3.7 billion from $2.9 billion in Q1 fiscal 2024[6] - Diluted EPS increased 35% for Q1 to $1.40 from $1.04 in Q1 fiscal 2024[6] - Total segment operating income increased 31% for Q1 to $5.1 billion from $3.9 billion in Q1 fiscal 2024[6] - Net income attributable to The Walt Disney Company rose to $2,554 million, compared to $1,911 million in the same quarter last year, marking an increase of 33.7%[47] - Income before income taxes for Q1 2024 was $3,660 million, a 27% increase from $2,871 million in Q1 2023[66] Subscriber Metrics - Disney+ and Hulu subscriptions reached 178 million, an increase of 0.9 million vs. Q4 fiscal 2024[6] - Disney+ paid subscribers decreased by 0.7 million to 124.6 million, with domestic subscribers increasing by 1% to 56.8 million and international subscribers decreasing by 2% to 67.8 million[25] - Hulu's total paid subscribers increased by 3% to 53.6 million, with SVOD only subscribers rising by 3% to 49.0 million[25] Revenue Growth - Direct-to-Consumer advertising revenue declined 2%, but excluding Disney+ Hotstar in India, it was up 16% vs. Q1 fiscal 2024[6] - Content Sales/Licensing revenue increased by 34% to $2.183 billion, with operating income improving to $312 million from a loss of $224 million[28] - ESPN domestic revenue increased by 9% to $4.422 billion, while international revenue rose by 7% to $389 million, resulting in total ESPN revenue of $4.811 billion, an 8% increase[29] - Parks & Experiences revenue increased by 3% to $9.415 billion, with domestic revenue rising by 2% to $6.432 billion and international revenue increasing by 12% to $1.646 billion[32] Cash Flow and Expenses - Approximately $15 billion in cash is expected to be provided by operations in fiscal 2025[11] - Cash provided by operations increased by $1.020 billion to $3.205 billion, while free cash flow decreased by $147 million to $739 million[42] - Cash provided by operations for the quarter was $3,205 million, compared to $2,185 million in the previous year, indicating a growth of 46.6%[51] - Cash used in investing activities for Q1 2024 was $2,575 million, compared to $1,246 million in Q1 2023[68] - Cash and cash equivalents at the end of Q1 2024 were $5,582 million, down from $7,247 million at the end of Q1 2023[68] Capital Expenditures and Assets - Capital expenditures increased significantly to $2,466 million from $1,299 million, primarily due to higher spending on cruise ship fleet expansion in the Experiences segment[44] - Total assets as of December 28, 2024, were $197,046 million, a slight increase from $196,219 million as of September 28, 2024[49] Tax and Interest - The effective income tax rate increased to 27.8% from 25.1% due to a non-cash tax charge related to the Star India Transaction[39] - Interest expense decreased by 8% to $487 million, while net interest expense increased by 49% to $367 million due to lower average rates and debt balances[36] - Interest expense increased to $367 million from $246 million year-over-year, reflecting a rise of 49.2%[47] Restructuring and Impairment - The company experienced a restructuring and impairment charge of $143 million during the quarter, which was not present in the prior year[47] - Restructuring and impairment charges for Q1 2024 amounted to $143 million, with no such charges reported in Q1 2023[66]