Summary
The Walt Disney Company reported strong financial results for the quarter and six months ended March 30, 2019, driven by the significant acquisition of Twenty-First Century Fox (21CF) and the consolidation of Hulu. Total revenues saw a 3% increase for the quarter and 1% for the six months, reaching $14.9 billion and $30.2 billion, respectively. Net income attributable to Disney surged by 86% for the quarter to $5.5 billion and by 12% for the six months to $8.2 billion, largely due to a substantial one-time gain from remeasuring its Hulu investment to fair value. Diluted earnings per share (EPS) from continuing operations also saw significant growth, up 81% for the quarter to $3.53. Segment performance was mixed. While Parks, Experiences and Products showed solid growth in both revenue and operating income, Studio Entertainment experienced a notable decline in revenues and operating income, primarily due to a weaker theatrical and home entertainment release slate compared to the prior year. The Direct-to-Consumer & International segment continued to operate at a loss, reflecting ongoing investments in streaming services like ESPN+ and preparations for the Disney+ launch, along with the inclusion of Hulu's results. The company also incurred significant restructuring and impairment charges related to the 21CF acquisition and integration. The acquisition of 21CF significantly impacted the balance sheet, increasing total assets and liabilities. The company also assumed substantial debt, leading to a higher overall debt level, which is being addressed through planned divestitures. Despite the increased debt, Disney maintained a strong liquidity position.
Financial Highlights
53 data points| Revenue | $14.92B |
| SG&A Expenses | $2.33B |
| Operating Expenses | $11.53B |
| Operating Income | $3.81B |
| Interest Expense | $198.00M |
| Net Income | $5.45B |
| EPS (Basic) | $3.56 |
| EPS (Diluted) | $3.55 |
| Shares Outstanding (Basic) | 1.53B |
| Shares Outstanding (Diluted) | 1.54B |
Key Highlights
- 1Total revenues for the quarter increased 3% to $14.9 billion, and for the six months increased 1% to $30.2 billion.
- 2Net income attributable to Disney increased significantly by 86% for the quarter to $5.5 billion, primarily driven by a $4.9 billion gain from the Hulu remeasurement.
- 3Diluted EPS from continuing operations rose 81% to $3.53 for the quarter.
- 4The acquisition of 21st Century Fox (21CF) was completed on March 20, 2019, significantly impacting the company's financial statements and balance sheet.
- 5Parks, Experiences and Products segment revenue grew 5% for the quarter and 5% for the six months, with operating income up 15% and 12% respectively.
- 6Studio Entertainment revenues declined 15% for the quarter and 21% for the six months, impacting segment operating income.
- 7Direct-to-Consumer & International segment reported an operating loss, reflecting increased investments in streaming services and the consolidation of Hulu.
- 8Restructuring and impairment charges totaled $662 million for the quarter and $662 million for the six months, primarily related to the 21CF acquisition and integration.