Walt Disney Co

Previous wording

On November 14, 2024, the Company and RIL completed the Star India Transaction (see Note 4 to the Condensed Consolidated Financial Statements). After November 14, 2024, the Company began recognizing its 37% share of the India joint venture’s results in “Equity in the income of investees.” Star India results in the current quarter through November 14, 2024 and results in the prior-year quarter are consolidated in the Company’s financial results for those periods and reported in the Entertainment and Sports segments.

Current wording

On November 14, 2024, the Company and RIL completed the Star India Transaction (see Note 4 to the Condensed Consolidated Financial Statements) following which the Company began recognizing its 37% share of the India joint venture’s results in “Equity in the income of investees.” Star India results in the current six-month period through November 14, 2024 and results in the prior-year quarter and six-month period are consolidated in the Company’s financial results for those periods and reported in the Entertainment and Sports segments.

Previous wording

Revenues for the quarter increased 5%, or $1.1 billion, to $24.7 billion; net income attributable to Disney increased to $2.6 billion compared to $1.9 billion; and diluted earnings per share (EPS) attributable to Disney increased to $1.40 compared to $1.04 in the prior-year quarter. The EPS increase was due to higher operating income at Entertainment.

Current wording

Revenues for the quarter increased 7%, or $1.5 billion, to $23.6 billion; net income attributable to Disney increased to $3.3 billion compared to a loss of $20 million in the prior-year quarter; and diluted earnings per share (EPS) attributable to Disney increased to $1.81 compared to a loss of $0.01 in the prior-year quarter. The EPS increase was due to the comparison to goodwill impairments in the prior-year quarter, a non-cash benefit from the resolution of a prior-year tax matter in the current quarter and higher operating income at Entertainment and Experiences.

Previous wording

Service revenues for the quarter increased 5%, or $1.1 billion, to $22.0 billion, due to higher subscription and theatrical distribution revenue and, to a lesser extent, growth in theme park admissions and resorts and vacations revenues. Service revenues reflected an approximate 3 percentage point decrease due to Star India and an approximate 1 percentage point decrease due to an unfavorable movement of the U.S. dollar against major currencies including the impact of our hedging program (Foreign Exchange Impact).

Current wording

Service revenues for the quarter increased 8%, or $1.5 billion, to $21.3 billion, which included an approximate 2 percentage point decrease from the Star India Transaction and an approximate 1 percentage point decrease due to an unfavorable movement of the U.S. dollar against major currencies including the impact of our hedging program (Foreign Exchange Impact). Aside from these impacts, service revenues increased due to higher subscription revenue, an increase in theatrical distribution revenue, growth at parks and experiences and higher advertising revenue.

Previous wording

Cost of services for the quarter decreased 1% to $13.8 billion due to lower sports programming and production costs, partially offset by the impact of inflation and increased volumes at our parks and experiences businesses as well as higher non-sports programming and production costs. Cost of services reflected an approximate 6 percentage point decrease due to Star India and an approximate 1 percentage point decrease due to a favorable Foreign Exchange Impact.

Current wording

Cost of services for the quarter increased 6%, or $0.7 billion, to $13.4 billion, which included an approximate 2 percentage point decrease due to the Star India Transaction. Aside from this impact, cost of services increased due to higher programming and production costs and, to a lesser extent, the impact of inflation and increased volumes at our parks and experiences businesses.

Previous wording

Selling, general, administrative and other costs increased 4% to $3.9 billion driven by a legal settlement and higher marketing costs. Selling, general and administrative and other costs reflected an approximate 1 percentage point decrease due to Star India and an approximate 3 percentage point decrease due to a favorable Foreign Exchange Impact.

Current wording

Selling, general, administrative and other costs increased 5%, or $0.2 billion, to $4.0 billion, which included an approximate 3 percentage point decrease due to the Star India Transaction. Aside from this impact, selling, general, administrative and other costs increased driven by higher marketing costs.

Previous wording

Depreciation and amortization increased 3% to $1.3 billion due to higher depreciation at Experiences, partially offset by lower TFCF and Hulu Acquisition Amortization.

Current wording

Depreciation and amortization increased 7%, or $0.1 billion, to $1.3 billion due to higher depreciation at our parks and experiences businesses.

Previous wording

The decrease in interest expense was primarily due to lower average rates and debt balances, partially offset by a decrease in capitalized interest.

Current wording

The decrease in interest expense was due to lower average rates and debt balances, partially offset by a decrease in capitalized interest.

Previous wording

The decrease in interest income, investment income and other reflected the impact of lower cash and cash equivalent balances, an unfavorable comparison related to pension and postretirement benefit costs, other than service cost, and investment losses in the current quarter compared to investment gains in the prior-year quarter.

Current wording

The decrease in interest income, investment income and other reflected the impact of lower cash and cash equivalent balances, an unfavorable comparison of pension and postretirement benefit costs, other than service cost, and net investment losses in the current period compared to gains in the prior-year period.

Previous wording

Income from equity investees decreased $89 million, to $92 million from $181 million, due to lower income from A+E Television Networks (A+E) and losses from the India joint venture in the current quarter.

Current wording

Income from equity investees decreased $194 million, to $128 million from $322 million, due to losses from the India joint venture in the current period and lower income from A+E Television Networks (A+E).

Previous wording

The decrease in net income attributable to noncontrolling interests was due to the comparison to accretion of NBC Universal’s interest in Hulu in the prior-year quarter.

Current wording

The decrease in net income attributable to noncontrolling interests was due to the accretion of NBC Universal’s interest in Hulu in the prior-year period.

Previous wording

•An impairment charge of $143 million and a non-cash tax charge of $213 million, which were both recorded in connection with the Star India Transaction (see Note 4 to the Condensed Consolidated Financial Statements)

Current wording

•Restructuring and impairment charges of $252 million and a non-cash tax charge of $244 million

Previous wording

The Company’s businesses are subject to the effects of seasonality. Consequently, the operating results for the quarter ended December 28, 2024 for each business segment, and for the Company as a whole, are not necessarily indicative of results to be expected for the full year.

Current wording

The Company’s businesses are subject to the effects of seasonality. Consequently, the operating results for the six months ended March 29, 2025 for each business segment, and for the Company as a whole, are not necessarily indicative of results to be expected for the full year.

Previous wording

(1)Reflects fees paid by Direct-to-Consumer to Sports and other Entertainment businesses for the right to air their linear networks on Hulu Live and fees paid by Entertainment to Sports to program sports on the ABC Network and Disney+.

Current wording

(1)Reflects fees paid by (a) Hulu to ESPN and the Entertainment linear networks business for the right to air their networks on Hulu Live and (b) ABC Network and Disney+ to ESPN to program certain sports content on ABC Network and Disney+.

Previous wording

The increase in Entertainment revenues was due to subscription revenue growth and higher theatrical distribution revenues.

Current wording

The increase in Entertainment revenues in the current quarter compared to the prior-year quarter was due to higher theatrical distribution revenue and subscription revenue growth.

Previous wording

The increase in Entertainment operating income in the current quarter compared to the prior-year quarter was due to improved results at Content Sales/Licensing and Other and Direct-to-Consumer, partially offset by a decrease at Linear Networks.

Current wording

The increase in Entertainment operating income in the current quarter compared to the prior-year quarter was due to improved results at Direct-to-Consumer and Content Sales/Licensing and Other.

Previous wording

Domestic ESPN affiliate revenue was comparable to the prior-year quarter, as an increase of 7% from higher effective rates was offset by a decrease of 7% from fewer subscribers.

Current wording

Domestic affiliate revenue was comparable to the prior-year quarter as an increase of 9% from higher effective rates was offset by a decline of 8% from fewer subscribers.

Previous wording

International programming and production costs decreased primarily due to Star India.

Current wording

International programming and production costs decreased primarily due to the Star India Transaction.

Previous wording

The decrease in other operating expenses was primarily attributable to lower technology costs.

Current wording

The decrease in other operating expenses was driven by lower technology costs and the Star India Transaction.

Previous wording

Growth in subscription fees reflected increases of 9% from higher rates attributable to increases in pricing and 6% from more subscribers, partially offset by a decrease of 2% from an unfavorable Foreign Exchange Impact.

Current wording

Growth in subscription fees reflected increases of 9% from higher effective rates attributable to increases in pricing and 3% from more subscribers, partially offset by decreases of 2% from an unfavorable Foreign Exchange Impact and 1% from the Star India Transaction.

Previous wording

(2)The sequential prior quarter and prior-year quarter Paid Subscribers and Average Monthly Revenue per Paid Subscriber have been adjusted to include Disney+ subscribers in Southeast Asia. These subscribers were previously reported with Disney+ Hotstar, which is no longer presented as this business was included in the Star India Transaction.

Current wording

(2)The prior-year quarter Paid Subscribers and Average Monthly Revenue per Paid Subscriber have been adjusted to include Disney+ subscribers in Southeast Asia. These subscribers were previously reported with Disney+ Hotstar, which is no longer presented as this business was included in the Star India Transaction.

Previous wording

Average Monthly Revenue Per Paid Subscriber - First Quarter of Fiscal 2025 Comparison to First Quarter of Fiscal 2024

Current wording

Average Monthly Revenue Per Paid Subscriber - Second Quarter of Fiscal 2025 Comparison to First Quarter of Fiscal 2025

Previous wording

Hulu SVOD Only average monthly revenue per paid subscriber was comparable to the prior sequential quarter as lower advertising revenue was offset by increases in pricing and a higher mix of subscribers to higher priced multi-product offerings.

Current wording

Hulu SVOD Only average monthly revenue per paid subscriber decreased from $12.52 to $12.36 due to lower advertising revenue, partially offset by increases in pricing.

Previous wording

Hulu SVOD Only average monthly revenue per paid subscriber increased from $12.29 to $12.52 due to increases in pricing, partially offset by lower per-subscriber advertising revenue and a higher mix of subscribers to multi-product offerings.

Current wording

Hulu SVOD Only average monthly revenue per paid subscriber increased from $11.84 to $12.36 due to increases in retail pricing, partially offset by lower per-subscriber advertising revenue and the impact of subscriber mix shifts.

Previous wording

Higher programming and production costs at Hulu were driven by higher subscriber-based fees for programming the Hulu Live TV service due to rate increases.

Current wording

Higher programming and production costs at Hulu were due to higher subscriber-based license fees attributable to rate increases for programming the Hulu Live TV service and more subscribers to bundles with third-party offerings, including premium add-ons.

Previous wording

Selling, general, administrative and other costs increased $94 million, to $679 million from $585 million, primarily due to higher theatrical marketing costs.

Current wording

Selling, general, administrative and other costs increased $238 million, to $620 million from $382 million, due to higher theatrical marketing costs.

Previous wording

Operating results from Content Sales/Licensing and Other increased $536 million, to income of $312 million from a loss of $224 million due to higher theatrical distribution results.

Current wording

Operating results from Content Sales/Licensing and Other increased $171 million, to income of $153 million from a loss of $18 million due to higher TV/VOD and home entertainment distribution results.

Previous wording

(1)In the current quarter, amortization of intangible assets was $251 million and amortization of step-up on film and television costs was $67 million. In the prior-year quarter, amortization of intangible assets was $282 million and amortization of step-up on film and television costs was $68 million.

Current wording

(1)In the current quarter, amortization of intangible assets was $251 million and amortization of step-up on film and television costs was $66 million. In the prior-year quarter, amortization of intangible assets was $271 million and amortization of step-up on film and television costs was $69 million.

Previous wording

The decrease in international ESPN affiliate revenue was attributable to an unfavorable Foreign Exchange Impact and, to a lesser extent, fewer subscribers, largely offset by higher effective rates.

Current wording

The increase in international ESPN affiliate revenue was attributable to higher effective rates, partially offset by an unfavorable Foreign Exchange Impact and fewer subscribers.

Previous wording

Average Monthly Revenue Per Paid Subscriber - First Quarter of Fiscal 2025 Comparison to First Quarter of Fiscal 2024

Current wording

Average Monthly Revenue Per Paid Subscriber - Second Quarter of Fiscal 2025 Comparison to First Quarter of Fiscal 2025

Previous wording

Domestic ESPN programming and production costs increased in the current quarter compared to the prior-year quarter primarily due to expanded college football programming rights including one additional CFP game. The CFP format was revised starting with the 2024-2025 season, which added four first round games in the current quarter, two of which aired on our networks and two of which were sub-licensed. In the prior-year quarter, we aired three host games, which under the new format are now quarterfinal and semifinal games that aired in the second quarter of the current fiscal year.

Current wording

Domestic ESPN programming and production costs increased in the current quarter compared to the prior-year quarter primarily due to airing additional CFP and NFL games.

Previous wording

Higher programming and production costs at international ESPN were attributable to higher soccer rights costs reflecting contractual rate increases, partially offset by a favorable Foreign Exchange Impact.

Current wording

Higher programming and production costs at international ESPN were driven by higher soccer rights costs.

Previous wording

Theme park admissions revenue growth was due to an increase of 4% from higher average per capita ticket revenue, partially offset by a decrease of 1% from lower attendance. The decrease in attendance reflected a decline at our domestic parks, including the impact of hurricanes at Walt Disney World Resort, partially offset by attendance growth at our international parks.

Current wording

Theme park admissions revenue growth was due to increases of 4% from higher average per capita ticket revenue and 1% from attendance growth.

Previous wording

The decrease in domestic affiliate revenue was due to a decline of 8% from fewer subscribers, partially offset by an increase of 7% from higher effective rates.

Current wording

The decrease in domestic affiliate revenue was due to a decline of 8% from fewer subscribers, which was largely offset by an increase of 8% from higher effective rates.

Previous wording

Lower international affiliate revenue was due to declines of 14% from Star India, 8% from lower effective rates, 5% from fewer subscribers and 2% from an unfavorable Foreign Exchange Impact.

Current wording

Lower international affiliate revenue was due to decreases of 22% from the Star India Transaction, 8% from lower effective rates and 5% from fewer subscribers.

Previous wording

The increase in domestic advertising revenue included an increase of 12% from higher rates, due to more political advertising at the owned television stations, partially offset by an 11% decrease from fewer impressions attributable to lower average viewership at our networks.

Current wording

The decline in domestic advertising revenue was due to a decrease of 8% from fewer impressions attributable to lower average viewership, partially offset by an increase of 3% from higher rates resulting from increased rates at the owned television stations.

Previous wording

Income from equity investees decreased $50 million, to $123 million from $173 million, due to lower income from A+E attributable to decreases in advertising and affiliate revenue and the comparison to a gain on the sale of an investment in the prior-year quarter.

Current wording

Income from equity investees decreased $61 million, to $252 million from $313 million, due to lower income from A+E attributable to decreases in advertising and affiliate revenue.

Previous wording

Operating income from Linear Networks decreased $138 million, to $1,098 million from $1,236 million, due to a decrease at our international business as a result of Star India, and lower income from equity investees.

Current wording

Operating income from Linear Networks decreased $121 million, to $1,867 million from $1,988 million, due to a decrease at our international business as a result of the Star India Transaction and lower income from equity investees, partially offset by an increase at our domestic business.

Previous wording

Lower advertising revenue was attributable to decreases of 16% from Star India, which included International Cricket Council (ICC) Cricket World Cup programming on Disney+ Hotstar in the prior-year quarter, and 11% from lower rates at Hulu and Disney+ Core. There were no significant cricket events in the current quarter prior to the Star India Transaction. These decreases were partially offset by an increase of 24% from higher impressions at Disney+ Core and Hulu.

Current wording

Higher advertising revenue was attributable to an increase of 24% from higher impressions, partially offset by decreases of 12% from lower rates and 10% from Star India, which included International Cricket Council (ICC) Cricket World Cup programming on Disney+ Hotstar in the prior-year period. There were no significant cricket events in the current period prior to the Star India Transaction.

Previous wording

Domestic Disney+ average monthly revenue per paid subscriber decreased from $8.15 to $7.99 driven by a higher mix of subscribers to wholesale offerings, largely offset by increases in pricing.

Current wording

Domestic Disney+ average monthly revenue per paid subscriber decreased from $8.07 to $8.02 due to the impact of subscriber mix shifts, partially offset by increases in pricing.

Previous wording

The decrease in programming and production costs at Disney+ was due to Star India reflecting ICC Cricket World Cup programming in the prior-year quarter.

Current wording

The decrease in programming and production costs at Disney+ was due to Star India reflecting ICC Cricket World Cup programming in the prior-year period.