The Walt Disney Company (Disney) reported a 4% increase in quarterly revenues to $23.2 billion, with net income rising to $2.6 billion compared to a loss of $0.5 billion in the same quarter last year. Diluted earnings per share (EPS) improved significantly to $1.43 from a loss of $0.25 in the prior-year quarter. The improvement in EPS was attributed to the absence of prior-year content impairment charges and higher operating income in the Entertainment segment. Service revenues rose by 4% to $20.8 billion, driven by higher Direct-to-Consumer (DTC) subscription revenue and advertising revenue. Operating expenses for services increased by 2% to $13.2 billion due to higher sports programming costs and increased volumes at parks and experiences, offset by lower non-sports programming costs. Depreciation and amortization...Show More

The Walt Disney Company (Disney) reported a 4% increase in quarterly revenues to $23.2 billion, with net income rising to $2.6 billion compared to a loss of $0.5 billion in the same quarter last year. Diluted earnings per share (EPS) improved significantly to $1.43 from a loss of $0.25 in the prior-year quarter. The improvement in EPS was attributed to the absence of prior-year content impairment charges and higher operating income in the Entertainment segment. Service revenues rose by 4% to $20.8 billion, driven by higher Direct-to-Consumer (DTC) subscription revenue and advertising revenue. Operating expenses for services increased by 2% to $13.2 billion due to higher sports programming costs and increased volumes at parks and experiences, offset by lower non-sports programming costs. Depreciation and amortization expenses decreased by 9% to $1.2 billion. The company also reported a significant reduction in restructuring and impairment charges, from $2.65 billion in the prior-year quarter to zero in the current quarter. Interest expense, net, increased by 12% due to higher average rates. Equity in the income of investees decreased by 24% to $146 million. Income taxes were reported at $251 million, with an effective tax rate of 8.1%. Net income attributable to noncontrolling interests decreased by 28% to $221 million. Disney's Entertainment segment saw a 4% increase in revenues to $10.58 billion, with operating income exceeding 100% improvement due to better performance in DTC and Content Sales/Licensing. The Sports segment reported a 5% increase in revenues to $4.56 billion, though operating income decreased by 6% to $802 million. The Experiences segment saw a 2% rise in revenues to $8.39 billion, with operating income slightly decreasing by 3% to $2.22 billion. The company's cash flow from operations increased by 67% to $8.45 billion, with investing activities using $4.9 billion, primarily due to investments in parks, resorts, and other property. Financing activities used $11.72 billion, largely due to payments for redeemable noncontrolling interests in Hulu and BAMTech. Disney's financial condition remains strong, with adequate resources to fund ongoing operations, contractual obligations, and future capital expenditures.