Disney ETFs in Focus Post Q2 Earnings

Core Insights - The Walt Disney Company reported second-quarter fiscal 2025 adjusted earnings of $1.45 per share, exceeding the Zacks Consensus Estimate by 22.88% and reflecting a year-over-year increase of 19.8% [1] - Revenues for the quarter rose 7% year over year to $23.62 billion, surpassing the consensus mark by 2.1% [1] - Segmental operating income was $4.44 billion, up 15.4% year over year, and shares rose nearly 11% following the earnings report [1] Segment Breakdown - Entertainment revenues, making up approximately 45.2% of total revenues, increased 9% year over year to $10.68 billion, with segmental operating income surging 94.9% to $1.7 billion [2] - Experiences revenues, constituting 37.6% of total revenues, rose 5.9% year over year to $8.89 billion, while international revenues decreased 5.3% to $1.44 billion [3] - Revenues from Linear Networks declined 12.5% year over year to $2.42 billion, but operating income increased 2.3% to $769 million [3] - Direct-to-Consumer revenues increased 8.4% year over year to $6.12 billion [3] - Content Sales/Licensing and Other revenues grew 54.5% year over year to $2.15 billion, with operating income turning positive at $153 million compared to a loss of $18 million in the previous year [4] - Sports revenues increased 5% year over year to $4.53 billion, although operating income fell 12% to $687 million [4] Subscriber Information - As of March 29, 2025, Disney+ had 126 million paid subscribers, up from 124.6 million as of December 28, 2024 [5] - Domestic Disney+ average monthly revenue per paid subscriber increased 5% to $7.52, while international average monthly revenue per paid subscriber rose from $6.78 to $7.19 [5] Guidance - For fiscal 2025, Disney anticipates adjusted earnings of $5.75 per share, representing a 16% increase over fiscal 2024 [7] - Operating income growth in the Entertainment segment is expected to be in the double-digit percentage range [7] Strategic Developments - Following the earnings report, Disney announced plans for a new theme park and resort in Abu Dhabi, marking its first major venture in the Middle East [8] - This project is separate from the $60 billion Disney has committed to theme park investments over the next decade, highlighting the region's potential due to its proximity to one-third of the global population and a tourism market of approximately 500 million people [9]