Disney has today reported an increase in revenue to $22.1 billion for the second quarter of fiscal year 2024, up from $21.8 billion in the same period last year.
The Experiences business proved to be a strong growth driver, with revenues climbing 10% and operating income growing 12%. While Q3 is expected to see comparable results year-over-year, the full year is anticipated to bring robust growth in this segment. Results were higher at Walt Disney World compared to prior-year quarter due to increased guest spending from higher average ticket prices and cost saving initiatives. The domestic Parks and Experience segment saw 7% growth.
Notably, Disney+ and Hulu reported a combined profit in the quarter for the first time ever. Disney+ subscribers increased by more than 6 million in the second quarter to 117.6 million global customers. Total Hulu subscribers grew 1% to 50.2 million. ESPN+ subscribers dropped by 2% to 24.8 million.
“Our strong performance in Q2, with adjusted EPS(1) up 30% compared to the prior year, demonstrates we are delivering on our strategic priorities and building for the future,” said Robert A. Iger, Chief Executive Officer, The Walt Disney Company. “Our results were driven in large part by our Experiences segment as well as our streaming business. Importantly, entertainment streaming was profitable for the quarter, and we remain on track to achieve profitability in our combined streaming businesses in Q4.
“Looking at our company as a whole, it’s clear that the turnaround and growth initiatives we set in motion last year have continued to yield positive results. We have a number of highly anticipated theatrical releases arriving over the next few months; our television shows are resonating with audiences and critics alike; ESPN continues to break ratings records as we further its evolution into the preeminent digital sports platform; and we are turbocharging growth in our Experiences business with a number of near- and long-term strategic investments.”
View the full Q2 Results.
Domestic Parks and Experiences
The increase in operating income at the domestic parks and experiences was due to higher results at Walt Disney World Resort and Disney Cruise Line, partially offset by lower results at Disneyland Resort.
At Walt Disney World Resort, higher results in the current quarter compared to the prior-year quarter were due to:
- Increased guest spending attributable to higher average ticket prices
- Higher costs due to inflation, partially offset by lower depreciation and cost saving initiatives
Growth at Disney Cruise Line was due to an increase in average ticket prices, partially offset by higher costs
The decrease in operating results at Disneyland Resort was due to:
- Higher costs driven by inflation
- An increase in guest spending attributable to higher average ticket prices and daily hotel room rates
- Higher volumes due to attendance growth, partially offset by lower occupied room nights
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