Disney Kicks Off Josh D’Amaro’s Leadership with Impressive Quarterly Results Amid Streaming Growth
Disney reported impressive fiscal second-quarter results on Wednesday, marking a strong debut for new CEO Josh D’Amaro.
The company’s total revenue rose by 7% year-over-year, reaching nearly $25.2 billion. Earnings per share, excluding certain items, amounted to $1.57, surpassing Wall Street analysts’ expectations.
Disney’s entertainment streaming sector experienced an 88% increase in operating income, climbing to $582 million. The surge was attributed to subscriber growth, price increases, and a higher number of ad impressions, particularly from popular titles like Zootopia 2, which transitioned from theaters to Disney+ in March.
This quarter represents the first under D’Amaro’s leadership, who took over from Bob Iger after a closely watched succession process. Previously the head of Disney’s Experiences division, D’Amaro is set to communicate his strategic vision to Wall Street during the quarterly earnings call.
Watch on Deadline
The earnings report highlighted three strategic priorities for the company: investing in intellectual property, enhancing customer reach and engagement, and leveraging technology.
Entertainment revenue increased by 10%, totaling $11.7 billion, while operating income rose by 6% to $1.336 billion. Subscription and affiliate revenues grew by 14% compared to the same quarter last year. Advertising revenue from Disney Entertainment saw a nearly 5% increase, aided by the Fubo transaction, which contributed over 1%. “This growth reflects our expanding streaming revenues more than offsetting our declining linear revenues,” Disney stated in its earnings release. The report also noted a shift in revenue sources, with the company generating more from streaming subscription and advertising than from traditional linear TV, a trend expected to continue.
Zootopia 2 set a record with a global box office total of $1.9 billion, driving more than 1 billion hours of viewing on Disney+ following its release.
The company pointed to other streaming successes, including Predator: Badlands, the 20th anniversary of Hannah Montana, Season 2 of Paradise on Hulu, and FX’s Love Story: John F. Kennedy Jr. and Carolyn Bessette. Upcoming titles like Avatar: Fire and Ash and Hoppers, as well as the final season of The Bear on Disney+ and Hulu, are also highly anticipated. Additionally, Disney+ has made significant international progress, with standout series like Battle of Fates in Korea and Rivals in the UK, whose second season is set to premiere next week.
Meanwhile, the sports division, which includes ESPN, faced challenges in a quarter without football. Total revenue in this segment rose by just 2% to $4.6 billion, with operating income declining by 5% to $652 million.
Despite economic challenges, including the impact of the war in Iran on air travel and tourism, Disney’s Experiences division saw revenues increase by 7% to $9.5 billion, with operating income rising by 5% to $2.6 billion.
Attendance at domestic parks decreased by 1% from the previous quarter, attributed to ongoing challenges in international visitation. Disney noted it is beginning to overcome attendance hurdles faced in recent months, suggesting that consumer demand remains robust. The company anticipates an improvement in year-over-year attendance at domestic parks for the upcoming quarter compared to Q2 results.
Overall, Disney emphasized its distinct competitive advantage: the ability to create characters, stories, and franchises that foster lasting connections with global audiences across various platforms. “What begins as a single creative investment can evolve into a multi-decade relationship — one that spans platforms, geographies, and generations,” the company asserted, suggesting these strengths support sustainable earnings growth and cash flow.
D’Amaro is expected to elaborate on these themes in his forthcoming remarks to analysts.
