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10-QPeriod: Q1 FY2025

Walt Disney Co Quarterly Report for Q1 Ended Dec 28, 2024

Filed February 5, 2025For Securities:DIS

Summary

The Walt Disney Company's Q1 2025 results show a significant improvement in profitability and earnings per share compared to the prior year. Total revenues grew by 5% to $24.7 billion, driven primarily by the Entertainment and Experiences segments. Net income attributable to Disney surged by 34% to $2.55 billion, translating to a 35% increase in diluted EPS to $1.40 from $1.04. The company's strategic improvements, particularly in the Entertainment segment which saw a substantial 95% increase in operating income, are contributing to this enhanced financial performance. While Parks, Experiences and Products continue to be a strong performer with stable operating income, the Direct-to-Consumer (DTC) segment showed a notable improvement, moving from a loss to profitability. The company also continues its share repurchase program, demonstrating a commitment to returning value to shareholders.

Financial Statements
Beta
Revenue$24.69B
SG&A Expenses$3.93B
Operating Expenses$20.61B
Operating Income$5.06B
Interest Expense$487.00M
Net Income$2.55B
EPS (Basic)$1.41
EPS (Diluted)$1.40
Shares Outstanding (Basic)1.81B
Shares Outstanding (Diluted)1.82B

Key Highlights

  • 1Total revenues increased by 5% to $24.7 billion year-over-year.
  • 2Net income attributable to Disney rose by 34% to $2.55 billion.
  • 3Diluted EPS increased by 35% to $1.40, up from $1.04 in the prior year.
  • 4The Entertainment segment's operating income more than doubled, growing by 95% to $1.7 billion, driven by improvements in Content Sales/Licensing and Direct-to-Consumer operations.
  • 5The Direct-to-Consumer segment shifted from a net loss of $138 million to a profit of $293 million.
  • 6Capital expenditures increased significantly, particularly in the Experiences segment due to cruise ship fleet expansion.
  • 7The company announced a new $3 billion share repurchase program for fiscal year 2025.

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