Disney(US:DIS)2025-05-07 12:04Financial Performance - Total revenues for the quarter ended March 29, 2025, increased to $23,621 million, up 7% from $22,083 million in the same quarter of 2024[13] - Net income attributable to The Walt Disney Company for the quarter was $3,275 million, compared to a net loss of $20 million in the prior year quarter[13] - Earnings per share (diluted) for the quarter was $1.81, a significant increase from $(0.01) in the same quarter last year[13] - Comprehensive income attributable to Disney for the six months ended March 29, 2025, was $6,651 million, compared to $1,674 million in the same period of 2024[15] - Net income attributable to Disney for the current six-month period increased $3.9 billion, to $5.8 billion; EPS increased to $3.21 from $1.03 in the prior-year period[143] - Income before income taxes for the six months ended March 29, 2025, was $6,747 million, a 91% increase from $3,528 million in the prior year[151] Assets and Equity - Total current assets decreased to $22,735 million as of March 29, 2025, down from $25,241 million at September 28, 2024[18] - Total assets as of March 29, 2025, were $195,833 million, slightly down from $196,219 million at September 28, 2024[18] - As of March 29, 2025, total equity attributable to Disney is $104,339 million, an increase from $100,696 million at September 28, 2024, representing a growth of approximately 3.3%[25] - The company’s total equity, including non-controlling interests, stands at $108,766 million as of March 29, 2025, compared to $105,522 million at September 28, 2024, reflecting an increase of approximately 3.1%[25] Cash Flow and Investments - Cash provided by operations for the six months ended March 29, 2025, was $9,958 million, compared to $5,851 million for the same period in 2024[20] - Investments in parks, resorts, and other property for the six months ended March 29, 2025, totaled $4,328 million, an increase from $2,558 million in the prior year[20] - The company repurchased common stock worth $1,785 million during the six months ended March 29, 2025, compared to $1,001 million in the previous year, reflecting a 78.1% increase in stock repurchases[25] Segment Performance - Total segment revenues for the quarter ended March 29, 2025, were $23,621 million, an increase of 7.0% compared to $22,083 million for the same quarter in 2024[37] - Segment operating income for the quarter ended March 29, 2025, was $4,436 million, up 15.4% from $3,845 million in the same quarter of the previous year[38] - Subscription fees in the Entertainment segment reached $5,215 million for the quarter ended March 29, 2025, a 8.5% increase from $4,805 million in the same quarter of 2024[39] - The Sports segment generated revenues of $4,534 million for the quarter ended March 29, 2025, compared to $4,312 million in the same quarter of 2024, reflecting a growth of 5.1%[39] - Experiences segment revenues were $8,889 million for the quarter ended March 29, 2025, an increase of 5.9% from $8,393 million in the same quarter of 2024[39] Restructuring and Impairment - The company reported a restructuring and impairment charge of $109 million for the quarter, significantly lower than $2,052 million in the same quarter of the previous year[13] - The company incurred restructuring and impairment charges of $109 million in the quarter ended March 29, 2025, compared to $2,052 million in the same quarter of 2024[38] Tax and Deferred Revenue - The company expects to recognize a non-cash tax benefit of approximately $3.3 billion concurrent with the expected completion of the acquisition of NBCU's interest in Hulu in the third quarter of fiscal 2025[32] - Future revenue from unsatisfied performance obligations is estimated at $15 billion, with $3 billion expected to be recognized in the remainder of fiscal 2025[42][43] - Deferred revenues increased to $6.347 billion in the current period from $5.587 billion in the prior period[45] Borrowings and Interest Expense - The Company's total borrowings decreased from $45.815 billion on September 28, 2024, to $42.889 billion on March 29, 2025, reflecting a reduction of $2.926 billion[58] - Interest expense for the quarter ended March 29, 2025, was $346 million, an increase from $311 million in the same quarter of 2024[38] - Interest expense, net decreased 28% to $713 million due to lower average rates and debt balances[148] Legal Matters - The company intends to vigorously defend against ongoing legal matters, including a securities class action lawsuit filed against it[92] - The Company is involved in multiple antitrust lawsuits, including the Biddle Action and Fendelander Action, with claims under Section 1 of the Sherman Act and various state antitrust laws, seeking unspecified money damages and injunctive relief[95] - A new lawsuit, the Unger Action, was filed against the Company, alleging improper bundling of ESPN with other networks and seeking damages and injunctive relief, including a requirement to divest interests in Fubo and Hulu[96] Derivative Instruments and Fair Value - The fair value of the Company's borrowings as of March 29, 2025, is reported at $39.401 billion, with Level 2 borrowings valued at $37.182 billion[101] - The total recorded fair value of liabilities as of March 29, 2025, is $(1.209) billion, with significant liabilities in derivatives related to interest rates and foreign exchange[101] - The Company’s derivative positions measured at fair value show a net derivative position of $46 million as of March 29, 2025[106]