Walt Disney reported strong financial performance for Q2 of fiscal 2025, with revenues increasing by 7 percent to $23.6 billion and income before taxes rising to $3.1 billion from $0.7 billion in Q2 2024.
Operating income
Total segment operating income grew by 15 percent to $4.4 billion. The Entertainment segment’s operating income increased by $0.5 billion to $1.3 billion.
Sports segment operating income decreased by $91 million to $687 million, impacted by higher programming costs and a write-off due to exiting the Venu joint venture. The Experiences segment saw a $0.2 billion increase in operating income to $2.5 billion.
Walt Disney’s operating income for the streaming division surged to $336 million, up from $47 million a year ago, driven by rising demand and improved monetization.
Customers
Walt Disney’s streaming business performed strongly in the latest quarter, with the company adding 1.4 million subscribers to Disney+ and 1.1 million to Hulu, reversing previous concerns about subscriber losses after a price hike, Reuters news report said.
Disney+ and Hulu subscriptions reached 180.7 million, a gain of 2.5 million from Q1 2025.
Disney+ grew its customer base from 124.6 million in December 2024 to 126.0 million in March 2025, a 1 percent increase.
Hulu increased from 53.6 million to 54.7 million, a 2 percent rise, driven by a 3 percent growth in SVOD Only subscribers despite a 4 percent decline in Live TV + SVOD subscribers.
ARPU
Disney+ and Hulu experienced changes in average monthly revenue per paid subscriber:
ARPU of Domestic Disney+ rose from $7.99 to $8.06 due to price increases, offset by lower ad revenue.
ARPU of International Disney+ increased from $7.19 to $7.52 due to subscriber mix and pricing changes, partially offset by unfavorable foreign exchange.
ARPU of Hulu SVOD Only declined from $12.52 to $12.36 due to lower ad revenue, despite higher pricing.
ARPU of Hulu Live TV + SVOD rose from $99.22 to $99.94, driven by price increases but tempered by reduced ad revenue.
CEO Robert Iger in the earnings report emphasized the company’s strategic focus on growth and expansion, highlighting upcoming theatrical releases, a new ESPN DTC offering, and significant projects in the Experiences segment.
Bob Iger highlighted Disney’s plan to expand its streaming portfolio by adding ESPN’s live sports streaming, enhancing personalization, and increasing content investments outside the U.S. Disney’s entertainment segment, which includes streaming, reported a 61 percent increase in operating income to $1.3 billion, underscoring the unit’s growing profitability.
Despite this, Disney shares have fallen 17 percent this year amid broader market volatility and concerns about economic uncertainty.
TelecomLead.com News Desk
