The Walt Disney Company reported its second quarter earnings of 2024 on Tuesday with CEO Bob Iger noting that the “strong performance in Q2 demonstrates we are delivering on our strategic priorities, while building for the future.”
“When you consider all of our businesses as a whole from Entertainment to Sports to Experiences, it’s clear that no one has what Disney has,” Iger said on the post-earnings call. “The turnaround and growth initiatives we set in motion last year have continued to yield positive results, and we are executing against our ambitious strategic priorities with both speed and determination.”
In terms of the results, Iger noted that overall, it “was another impressive quarter” for Disney. He also mentioned that the results were “driven in large part by our Experiences segment and our streaming business… with the entertainment portion of the streaming business” profitable in the quarter.
“This is a testament to the turnaround we set in motion last year and the outstanding leadership of Disney Entertainment Co-Chairmen Alan Bergman and Dana Walden,” he said. “It is particularly noteworthy when you consider we reported peak losses only 18 months ago.”
Iger pointed out that Disney remains on track to reach profitability in its combined streaming business in Q4 and added that “path to profitability will not be linear.”
“While we are anticipating a softer third quarter, due in large part to the seasonality of our India sports offerings, we fully expect streaming to be a growth driver for the company in the future and we have prioritized the steps necessary to achieve this,” he said.
Streaming Successes
Iger continued to touch on Disney’s streaming business by announcing that by the end of the year Disney will be adding an ESPN tile to Disney+, which will give all U.S. subscribers access to select live game and studio programming within the Disney+ app.
“We see this as a first step to bringing ESPN to Disney+ viewers as we ready the launch of our enhanced stand-alone ESPN streaming service in the fall of 2025,” he said.
Iger also spoke about successes that streaming has had in the quarter, including Shōgun, FX’s critically acclaimed global hit, which is “tracking as FX’s most-watched show ever on our streaming platforms” and “driving the second largest number of signups to our streaming services since 2022, behind only Black Panther: Wakanda Forever.”
He noted that “This is a great example of how we are successfully reaching wider audiences with our combined linear and streaming ecosystem.”
“The key to our success in streaming, and what consistently brings consumers back for more, is the array of exceptional content we produce that captivates audiences of all ages and backgrounds,” Iger said.
According to Iger, in Q2, series that aired on Disney’s linear networks accounted for 17 of the top 20 most viewed series on the company’s streaming platforms, with almost 3 billion hours of consumption.
“Our linear channels are deeply embedded in our direct-to-consumer strategy as they continue to deliver high-quality content that reaches demographics not captured on streaming alone, allowing us to broaden our audiences and leverage our unmatched content engine across an expansive base,” he said.
Sports Successes
Turning to ESPN, Iger said that “sports continues to stand out when it comes to convening large audiences, with recent big ratings wins across a variety of sports.”
That includes:
- The NCAA Women’s National Championship between Iowa and South Carolina being ESPN’s most viewed college basketball game ever, men’s or women’s.
- Record-breaking ratings for the WNBA Draft.
- Monday Night Football having its most-watched season since 2000.
- The Divisional Playoff game between the Houston Texans and Baltimore Ravens being ESPN’s most-watched NFL game ever with 32.4 million viewers.
Turbocharging Experiences
Finally, Iger spoke about Disney’s Experience business, which “remained an impressive financial driver in the quarter.”
“We are focused on turbocharging growth with a number of long-term strategic investments,” he said. “That includes our DisneylandForward initiative — the first step in our expansion plans at Disneyland Resort, which received unanimous preliminary approval by the Anaheim City Council last month.”
Iger pointed out that the approval was “a significant milestone,” and that the final vote is expected to take place on that evening.
“We’re incredibly excited for the many potential new stories our guests could experience at Walt’s original theme park, including the much-anticipated opportunity to bring Avatar to Disneyland,” Iger said, wrapping up the call.
The information above should be read together with the Q2 FY24 Disney Earnings Report and earnings call (both available here) as well as the 10-Q, which discuss additional information, including additional challenges and risks the company’s businesses face and additional information about Q2 FY24 performance.
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