Wed, May 7, 12:07 PM (4 days ago)
**The Walt Disney Company (DIS) Q1 2025 Financial Summary** **Revenue & Profit Margins:** - **Revenue:** $23.6 billion (7% YoY growth) - **Net Income:** $3.3 billion (significant increase from a loss of $20 million in Q1 2024) - **EPS:** $1.81 (improved from a loss of $0.01 in Q1 2024) **Segment Performance:** - **Entertainment:** Revenue $10.7 billion (9% YoY growth), Operating Income $1.3 billion (61% YoY growth) - **Sports:** Revenue $4.5 billion (5% YoY growth), Operating Income $687 million (12% YoY decline) - **Experiences:** Revenue $8.9 billion (6% YoY growth), Operating Income $2.5 billion (9% YoY growth) **Cash Flow:** - **Operating Cash Flow:** $9.9 billion (70% YoY growth) - **Capital Expenditures:** $4.5 billion (75% YoY increase) **Earnings Changes & Trends:** - **EPS Increase:** Driven by goodwill impairments in Q1 2024, a non-cash tax benefit in Q1 2025, and higher operating income at Entertainment and Experiences. - **Revenue Growth:** Driven by higher subscription revenue, theatrical distribution revenue, parks and experiences growth, and higher advertising revenue. **Uncertainties & Future Operations Impact:** - **Macroeconomic Conditions:** Evolving international political developments, trade policies, and consumer spending dynamics could adversely affect demand and increase costs. - **Legal Matters:** Exposure to various legal proceedings and contingent matters. - **Regulatory Landscape:** Changes in laws and regulations could impact operations and profitability. **Key Metrics:** - **Disney+ Subscribers:** 126 million (4% YoY growth) - **Hulu Subscribers:** 54.7 million (9% YoY growth) - **ESPN+ Subscribers:** 24.1 million (3% YoY decline) **Outlook:** - **Capital Expenditures:** Expected to be approximately $8 billion in fiscal 2025. - **Share Repurchases:** Targeting $3 billion in fiscal 2025. **Conclusion:** Disney's Q1 2025 results show strong revenue growth and a significant improvement in net income and EPS. The company continues to invest in content and experiences, with a focus on digital streaming services. However, uncertainties related to macroeconomic conditions, legal matters, and regulatory changes could impact future operations.