🎬 Disney surprises with steady growth!
In the third quarter of fiscal year 2025, Disney $DIS proved solid results. The company reported year-over-year revenue growth of 2 % to $23.65 billion, with net earnings per share (EPS) rose to $2.92, more than double last year's figure. Adjusted EPS was $1.61, up 16 % up 16% from last year.
The biggest driver was the Experiencessegment - that is, parks, cruise ships and entertainment. Operating profit of USD 2.52 billion (+13 %) and sales of USD 9.09 billion (+8 %) confirms that people want experiences they can remember. The Easter season and strong domestic demand have also helped (+22% operating profit for US parks).
📺 Streaming heads into profit
Disney+ and Hulu together attracted 2.6 million new subscribers. Direct-to-consumer segment (Direct-to-Consumer) turned a profit of $346 million for the first time in a long time .The loss was USD19 million compared to a loss of USD 19 million last year . USD. Sales here grew by 6 % to $6.18 billion.
By contrast, traditional TV is dragging down - linear networks -15 % revenue, down due to the end of Hotstar streaming in India and weaker licensing. The Entertainment segment recorded a year-on-year decline in operating profit of 15 % to $1.02 billion.
🏟️ ESPN is going strong
The Sports segment achieved an operating profit of USD 1.04 billion (+29 %). Despite rising rights costs (NBA, college sports) a 7% decline in ESPN' s profitability in the US, the overall result improved thanks to lower losses in India.
Major news:
Starting in 2026, ESPN will exclusively air all WWE content , including WrestleMania.
Disney enters strategic partnership with NFL, buys NFL Network in exchange for 10%NFL' s stake in ESPN. This could mean a major realignment of forces in US sports broadcasting .
2026 will also be a key year for the MCU (Marvel Cinematic Universe)when they plan to release several new movies from popular titles (Avengers: Doomsday, Spider-Man: Brand New Day).
💵 Robust cash flow.
Free cash flow +53 % 1.89 billion USD
Operating cash +41 % USD 3.67 billion
This gives the company room for further expansion, investment and return of capital to investors.
The stock responds with a drop of more than 2%!
What do you think of Disney? Do you use Disney+?
I had the shares but eventually sold them and moved the money elsewhere. The performance hasn't been ideal and overall I don't find the sector interesting anymore.
It's a great company and the stock is still pretty undervalued. The main upside is yet to come.
The company is doing well, but the big competitor is Netflix. I'd like to buy $NFLX stock, but the price would have to be lower.