Heard on the Street: Parks and cruises are helping Disney, but companywide profit margins are still well below the cable bundle’s heyday https://t.co/wVAqg0XjvI ...

Core Insights - The Walt Disney Company reported third-quarter fiscal 2025 adjusted earnings of $1.61 per share, exceeding the Zacks Consensus Estimate by 10.3% and reflecting a year-over-year increase of 15.8% [1] - Revenues for the quarter rose 2.1% year over year to $23.6 billion, slightly missing the consensus mark by 0.1% [1] Segment Details - Media and Entertainment Distribution revenues, accounting for 45.3% of total revenues, increased 1.2% year over year to $10.7 billion [2] - Linear Networks revenues declined 14.7% year over year to $2.27 billion, while Direct-to-Consumer revenues grew 6.4% year over year to $6.17 billion [2] - Content Sales/Licensing and Other revenues rose 6.9% year over year to $2.25 billion [2] - Parks, Experiences and Products revenues, making up 38.4% of total revenues, increased 8.3% year over year to $9.08 billion, with domestic revenues up 10% to $6.4 billion and international revenues up 5.6% to $1.69 billion [3] Subscriber Details - As of June 28, 2025, Disney+ had 127.8 million paid subscribers, up from 126 million as of March 29, 2025 [4] - Domestic Disney+ average monthly revenue per paid subscriber increased 0.4% sequentially to $8.09, while international average monthly revenue rose 2% to $7.67 [4] Operating Details - Total costs and expenses increased 1% year over year to $20 billion, with segmental operating income rising 8.3% to $4.57 billion [6] - Media and Entertainment Distribution's segmental operating income fell 14.9% year over year to $1.02 billion, primarily due to lower results in Linear Networks and Content Sales/Licensing [6] - Parks, Experiences and Products' operating income increased 13.2% year over year to $3.51 billion [9] Balance Sheet - As of June 28, 2025, cash and cash equivalents were $5.36 billion, down from $5.85 billion as of March 29, 2025 [11] - Total borrowings were $42.2 billion, a decrease from $42.9 billion as of March 29, 2025 [11] - Free cash flow for the quarter was $1.88 billion [11] Guidance - For the fourth quarter of fiscal 2025, Disney expects total Disney+ and Hulu subscriptions to increase by over 10 million, with most growth coming from Hulu [12] - The company projects adjusted earnings per share of $5.85 for fiscal 2025, an 18% increase over fiscal 2024 [13] - Direct-to-Consumer operating income is expected to reach $1.3 billion, with overall double-digit percentage growth anticipated for the Entertainment segment [13]

The WWE had long been expected to reap rewards for its lineup of 10 annual “premium live events” like Wrestlemania, but its $1.6 billion rights deal with ESPN unveiled Wednesday is drawing some extra attention on Wall Street. The agreement, whose financial terms were confirmed to Deadline by a source familiar with the details, succeeds a landmark pact with NBCUniversal’s Peacock. Despite raves in some corners, the deal has not managed to boost the stock of WWE parent TKO Group Holdings. Its shares declined ...

Core Viewpoint - Live Nation Entertainment, Inc. (LYV) is expected to report its second-quarter 2025 results on August 7, with an earnings surprise of 5.9% in the last quarter [1] Group 1: Q2 Estimates - The Zacks Consensus Estimate for second-quarter earnings per share is $1.01, reflecting a year-over-year decline of 1.9% [2] - Revenue estimates for the quarter are projected at $6.8 billion, indicating a year-over-year increase of 12.8% [2] Group 2: Factors Influencing Q2 Results - Strong demand for concerts, including high-profile tours, is likely to have positively impacted revenue, with global ticket sales increasing by 22% early in the second quarter [3] - Management anticipates that approximately two-thirds of fan growth will occur in the second half of 2025, contributing to revenue performance [3] - Increased attendance at owned or operated venues is expected to generate additional revenue from parking, concessions, and onsite spending [4] - Enhancements in fan experience through broader menu options and premium offerings are anticipated to boost per-fan revenue metrics [4] - Concert revenues are predicted to rise by 15.1% year over year to $5.7 billion, with Sponsorship and Advertising and Ticketing revenues expected to increase by 12.5% and 3.3%, respectively [5] Group 3: Cost Considerations - Rising labor-hiring costs, artist activation costs, and other operational expenses are likely to negatively impact LYV's bottom line [6] - The company is facing increased venue costs and service fees, with caution regarding cost overruns related to the development and expansion of live music venues [6] Group 4: Earnings Prediction - The model predicts an earnings beat for Live Nation, supported by a positive Earnings ESP of +1.55% and a Zacks Rank of 3 (Hold) [7][8] - The combination of these factors increases the likelihood of an earnings surprise in the upcoming report [7]

Entertainment giant Disney, which is counting on its streaming and theme-park businesses to drive growth, raised its profit forecasts for the fiscal year https://t.co/w11EifAMuq ...

Stock Performance & Expectations - Disney's stock had a positive run in the last six months, leading to high expectations for earnings and guidance [2][3] - The market may have already priced in the expected outperformance, resulting in a "sell on the news" reaction [3][4] - Disney's stock price ten years ago was at the same level as the current price, indicating a decade of stagnation [6] Strategic Transformation & ESPN - Disney is potentially setting the stage for a strategic transformation, with Iger's last year being 2026 [6][7] - Disney is positioning ESPN for a potential separation from the rest of the company in the next 12-18 months [7] - Key moves include launching a direct-to-consumer ESPN service, adding NFL content, and securing deals with the NBA and WWE [7] Deals & Partnerships - The market initially reacted positively to the ESPN and NFL media deal [5] - The speaker expresses surprise that there isn't more excitement around the WWE deal and the NFL deal [4]

Barron’s recently had a piece on Walt Disney Co (NYSE:DIS), in which they point out that the stock price is flat over the past ten years. That, of course, is an awful return in which you would have been just as well putting the money under a mattress. When you include dividends, the 10-year stock return is close to 10%, but that still pales in comparison to the S&P 500 Index (SPX), which has returned over 200% from 10 years ago.I will not be speculating on theme park demand, ESPN subscriber growth, or anyth ...

Streaming Service Launch - ESPN's direct-to-consumer streaming service will launch on August 21st, priced at $29.99 per month [1] - The service will offer everything ESPN has, including new features for fantasy sports, betting, and personalized sports center, accessible outside the cable bundle [1] - ESPN aims to be agnostic, allowing cable subscribers to authenticate and access the streaming service without additional cost, incentivizing them to maintain their cable subscriptions [1] - The industry is closely watching how many cable subscribers will cancel to opt for the ESPN streaming service, potentially pairing it with other streaming services like Netflix or Amazon [1] WWE Rights Acquisition - Disney is paying $325 million per year over 5 years for the US rights to 10 of WWE's premium live events, previously on Peacock, to be shown on ESPN [1] - These events, including WrestleMania, Royal Rumble, and SummerSlam, will move to ESPN starting in the 2026 calendar year [1] Stock Market Reaction - Disney's stock is up 3 and one-third percent following the news, indicating Wall Street's positive reaction [1] - The NFL will take a 10% stake in ESPN, potentially contributing to the stock's upward movement, signaling long-term security and NFL rights on ESPN [1] Industry Impact - The launch of ESPN's streaming service is a significant media question, affecting every media company tied to the linear cable bundle [1] - The industry is trying to find out how many more customers will cancel traditional cable now that ESPN can be accessed outside the bundle [1]

Entertainment giant Disney, which is counting on its streaming and theme-park businesses to drive growth, raised its profit forecasts in its current fiscal year https://t.co/k1elBmBFFJ ...

IQiyi is seeking to raise $300 million in a Hong Kong market debut this year, becoming the latest US-listed Chinese firm to tap investors closer to home https://t.co/OYeJf48xsW ...