Disney+ Subscribers Increase, Bob Iger Optimistic About 2025 Financial Outlook

TV & Film

May 8

Disney money — Image Source: Cultureslate

The Walt Disney Company reported robust fiscal Q2 2025 results, surpassing analyst expectations and raising its full-year profit outlook, driven by strong performance in its streaming and theme park divisions.

Disney+ added 1.4 million subscribers, totaling 126 million. Analysts had expected a decline of 1.1 million subscribers before. The company attributed this growth to the releases of Moana 2, Mufasa: The Lion King, and the debut of Daredevil: Born Again and expects a “modest increase” in subscribers for the June quarter.

Combined Disney+ and Hulu subscriptions reached 180.7 million. Streaming operating income surged to $336 million from $47 million a year earlier, marking continued profitability since August 2024.

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Financial Highlights:

Adjusted earnings per share (EPS) rose 20% year-over-year to $1.45, beating the projected $1.20
Revenue increased 7% to $23.62 billion, exceeding the anticipated $23.17 billion.
Total segment operating income grew 15% to $4.4 billion.
Net income reached $3.28 billion, a significant turnaround from a $20 million loss in the same quarter last year.

Experiences Segment:

Operating income increased 9% to $2.5 billion.
Domestic parks and experiences saw a 13% rise in operating income to $1.8 billion.
The company announced plans for a seventh theme park in Abu Dhabi, blending Disney stories with Emirati culture, but did not provide a timeframe for when the park will open.

Outlook:

Disney raised its full-year adjusted EPS guidance to $5.75, a 16% increase over fiscal 2024.
The company anticipates 6% to 8% operating income growth in the Experiences division and double-digit growth in the Entertainment segment.

CEO Bob Iger was pleased with the results and gave a cautiously optimistic outlook:

“Overall, we remain optimistic about the direction of the company and our outlook for the remainder of the fiscal year,” and added: “We continue to monitor macroeconomic developments for potential impacts to our businesses and recognize that uncertainty remains regarding the operating environment for the balance of the fiscal year.”

Following the earnings report, Disney's stock rose nearly 10%, reflecting investor confidence in the company's performance and outlook.

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