1、May7,2025THEWALTDISNEYCOMPANYREPORTSSECONDQUARTERANDSIXMONTHSEARNINGSFORFISCAL2025BURBANK,Calif.TheWaltDisneyCompanytodayreportedearningsforitssecondfiscalquarterendedMarch29,2025.FinancialResultsfortheQuarter:Revenuesincreased7%forQ2to$23.6billionfrom$22.1billioninQ2fiscal2024Incomebeforeincometaxe

2、sincreased$2.4billionforQ2to$3.1billionfrom$0.7billioninQ2fiscal2024Totalsegmentoperatingincome(1)increased15%forQ2to$4.4billionfrom$3.8billioninQ2fiscal2024Dilutedearningspershare(EPS)forQ2improvedto$1.81fromalosspershareof$0.01inQ2fiscal2024,andadjustedEPS(1)increased20%forQ2to$1.45from$1.21inQ2fi

3、scal2024KeyPoints:Entertainment:Segmentoperatingincomeof$1.3billion,a$0.5billionincreaseversusQ2fiscal2024Direct-to-Consumeroperatingincomeincreased$289millionto$336million180.7millionDisney+andHulusubscriptions,anincreaseof2.5millionversusQ1fiscal2025126.0millionDisney+subscribers,anincreaseof1.4mi

4、llionversusQ1fiscal2025LinearNetworksoperatingincomegrew2%;year-over-yeargrowthincludesacomparisonto$89millionofoperatingincomeinQ2fiscal2024fromStarIndiaSports:Segmentoperatingincomeof$687million,adecreaseof$91millionversusQ2fiscal2024Higherprogrammingandproductioncostsprimarilyduetoairingthreeaddi

5、tionalCollegeFootballPlayoffgamesandanadditionalNFLgameSportsrevenueincreased5%,reflecting7%DomesticESPNrevenuegrowthDomesticadvertisingrevenuegrowthof29%,reflectinga16pptbenefitfromachangeinformatoftheCollegeFootballPlayoffandairingadditionalCollegeFootballPlayoffandNFLgamesSportsoperatingincomewas

6、adverselyimpactedbyawrite-offduetoexitingtheVenujointventureExperiences:Segmentoperatingincomeof$2.5billion,anincreaseof$0.2billionversusQ2fiscal2024DomesticParks&Experiencesoperatingincomegrew13%to$1.8billionConsumerProductsoperatingincomegrew14%to$0.4billionShareRepurchasesof$1billioninthequarter,

7、keepingusonpacetorepurchase$3billionfortheyearFORIMMEDIATERELEASE1(1)TotalsegmentoperatingincomeanddilutedEPSexcludingcertainitems(alsoreferredtoasadjustedEPS)arenon-GAAPfinancialmeasures.ThemostcomparableGAAPmeasuresareincomebeforeincometaxesanddilutedEPS,respectively.Seethediscussiononpages17throu

8、gh21forhowwedefineandcalculatethesemeasuresandaquantitativereconciliationthereoftothemostdirectlycomparableGAAPmeasures.GuidanceandOutlook:Q3Fiscal2025:EntertainmentDirect-to-Consumer:ModestincreaseinDisney+subscriberscomparedtoQ2fiscal2025FiscalYear2025:AdjustedEPS(1)of$5.75,anincreaseof16%overfisc

9、al2024Cashprovidedbyoperationsof$17billion,a$2billionincreaseoverpriorguidancedrivenbythedeferraloftaxpaymentsEntertainment:Double-digitpercentagesegmentoperatingincomegrowthSports:18%segmentoperatingincomegrowthExperiences:6%to8%segmentoperatingincomegrowthDisneyCruiseLinepre-openingexpenseof$200mi

10、llion,with$40millioninQ3and$50millioninQ4EquitylossfromIndiaJVof$300milliondrivenbypurchaseaccountingamortizationWecontinuetomonitormacroeconomicdevelopmentsforpotentialimpactstoourbusinessesandrecognizethatuncertaintyremainsregardingtheoperatingenvironmentforthebalanceofthefiscalyearMessageFromOurC

11、EO:“OuroutstandingperformancethisquarterwithadjustedEPS(1)up20%fromtheprioryeardrivenbyourEntertainmentandExperiencesbusinessesunderscoresourcontinuedsuccessbuildingforgrowthandexecutingacrossourstrategicpriorities,”saidRobertA.Iger,ChiefExecutiveOfficer,TheWaltDisneyCompany.“Followinganexcellentfir

12、sthalfofthefiscalyear,wehavealotmoretolookforwardto,includingourupcomingtheatricalslate,thelaunchofESPNsnewDTCoffering,andanunprecedentednumberofexpansionprojectsunderwayinourExperiencessegment.Overall,weremainoptimisticaboutthedirectionofthecompanyandouroutlookfortheremainderofthefiscalyear.”(1)Dil

13、utedEPSexcludingcertainitems(alsoreferredtoasadjustedEPS)isanon-GAAPfinancialmeasure.ThemostcomparableGAAPmeasureisdilutedEPS.Seethediscussiononpages17through21forhowwedefineandcalculatethismeasure,ahistoricalquantitativereconciliationthereoftothemostdirectlycomparableGAAPmeasureandwhytheCompanyisno

14、tprovidingtheforward-lookingquantitativereconciliationofdilutedEPSexcludingcertainitemstothemostcomparableGAAPmeasure.2SUMMARIZEDFINANCIALRESULTSThefollowingtablesummarizessecondquarterresultsforfiscal2025and2024:QuarterEndedSixMonthsEnded($inmillions,exceptpershareamounts)March29,2025March30,2024Ch

15、angeMarch29,2025March30,2024ChangeRevenues$23,621$22,083 7%$48,311$45,632 6%Incomebeforeincometaxes$3,087$657 100%$6,747$3,528 91%Totalsegmentoperatingincome(1)$4,436$3,845 15%$9,496$7,721 23%DilutedEPS$1.81$(0.01)nm$3.21$1.03 100%DilutedEPSexcludingcertainitems(1)$1.45$1.21 20%$3.22$2.44 32%Cashpro

16、videdbyoperations$6,753$3,666 84%$9,958$5,851 70%Freecashflow(1)$4,891$2,407 100%$5,630$3,293 71%(1)Totalsegmentoperatingincome,dilutedEPSexcludingcertainitemsandfreecashflowarenon-GAAPfinancialmeasures.ThemostcomparableGAAPmeasuresareincomebeforeincometaxes,dilutedEPSandcashprovidedbyoperations,res

17、pectively.Seethediscussiononpages17through21forhowwedefineandcalculatethesemeasuresandareconciliationthereoftothemostdirectlycomparableGAAPmeasures.SUMMARIZEDSEGMENTFINANCIALRESULTSThefollowingtablesummarizessecondquartersegmentrevenueandoperatingincomeforfiscal2025and2024:QuarterEndedSixMonthsEnded

18、($inmillions)March29,2025March30,2024ChangeMarch29,2025March30,2024ChangeRevenues:Entertainment$10,682$9,796 9%$21,554$19,777 9%Sports4,5344,312 5%9,3849,147 3%Experiences8,8898,393 6%18,30417,525 4%Eliminations(1)(484)(418)(16)%(931)(817)(14)%Totalrevenues$23,621$22,083 7%$48,311$45,632 6%Segmentop

19、eratingincome:Entertainment$1,258$781 61%$2,961$1,655 79%Sports687778(12)%934675 38%Experiences2,4912,286 9%5,6015,391 4%Totalsegmentoperatingincome(2)$4,436$3,845 15%$9,496$7,721 23%(1)Reflectsfeespaidby(a)HulutoESPNandtheEntertainmentlinearnetworksbusinessfortherighttoairtheirnetworksonHuluLiveand

20、(b)ABCNetworkandDisney+toESPNtoprogramcertainsportscontentonABCNetworkandDisney+.(2)Totalsegmentoperatingincomeisanon-GAAPfinancialmeasure.ThemostcomparableGAAPmeasureisincomebeforeincometaxes.Seethediscussiononpages17through21.3DISCUSSIONOFSECONDQUARTERSEGMENTRESULTSStarIndiaOnNovember14,2024,theCo

21、mpanyandRelianceIndustriesLimited(RIL)completedtheformation(theStarIndiaTransaction)ofajointventure(Indiajointventure)thatcombinestheCompanysStar-brandedandothergeneralentertainmentandsportstelevisionchannelsanddirect-to-consumerDisney+HotstarserviceinIndia(StarIndia)withcertainmediaandentertainment

22、businessescontrolledbyRIL.RILhasaneffective56%controllinginterestinthejointventurewith37%heldbytheCompanyand7%heldbyathirdpartyinvestmentcompany.UponcompletionoftheStarIndiaTransaction,theCompanybeganrecognizingits37%shareoftheIndiajointventuresresultsin“Equityintheincomeofinvestees.”StarIndiaresult

23、sthroughNovember14,2024areconsolidatedintheCompanysfinancialresults.EntertainmentRevenueandoperatingincomefortheEntertainmentsegmentwereasfollows:QuarterEndedChangeSixMonthsEnded($inmillions)March29,2025March30,2024March29,2025March30,2024ChangeRevenues:LinearNetworks$2,418$2,765(13)%$5,035$5,568(10

24、)%Direct-to-Consumer6,1185,642 8%12,190 11,188 9%ContentSales/LicensingandOther2,1461,389 54%4,329 3,021 43%$10,682$9,796 9%$21,554$19,777 9%Operatingincome(loss):LinearNetworks$769$752 2%$1,867$1,988(6)%Direct-to-Consumer33647 100%629(91)nmContentSales/LicensingandOther153(18)nm465(242)nm$1,258$781

25、 61%$2,961$1,655 79%TheincreaseinEntertainmentoperatingincomeinthecurrentquartercomparedtotheprior-yearquarterwasduetoimprovedresultsatDirect-to-ConsumerandContentSales/LicensingandOther.4LinearNetworksLinearNetworksrevenuesandoperatingincomewereasfollows:QuarterEndedChange($inmillions)March29,2025M

26、arch30,2024RevenueDomestic$2,195$2,269(3)%International223496(55)%$2,418$2,765(13)%OperatingincomeDomestic$625$520 20%International1592(84)%Equityintheincomeofinvestees129140(8)%$769$752 2%DomesticDomesticoperatingincomeinthecurrentquarterincreasedcomparedtotheprior-yearquarterdueto:Adecreaseinmarke

27、tingcostsprimarilyattributabletofewernewshowsatourcablechannelsandlowermarketingcostsatABCNetworkreflectingmoreseasonpremieresintheprior-yearquarter Lowerprogrammingandproductioncostsdrivenbyloweraveragecostprogrammingatourcablechannels,partiallyoffsetbyahigheraveragecostmixofprogrammingatABCNetwork

28、 Adecreaseintechnologycosts Affiliaterevenuewascomparabletotheprior-yearquarterashighereffectiverateswereoffsetbyfewersubscribers AdecreaseinadvertisingrevenueduetolowerratesandfewerimpressionsattributabletoloweraverageviewershipInternationalThedecreaseininternationaloperatingincomewasduetotheStarIn

29、diaTransaction.Direct-to-ConsumerDirect-to-Consumerrevenuesandoperatingincomewereasfollows:QuarterEndedChange($inmillions)March29,2025March30,2024Revenue$6,118$5,642 8%Operatingincome$336$47 100%Theincreaseinoperatingincomeinthecurrentquartercomparedtotheprior-yearquarterwasdueto:Subscriptionrevenue

30、growthattributabletohighereffectiverates,reflectingincreasesinpricing,andmoresubscribers,partiallyoffsetbyanunfavorableforeignexchangeimpactandtheabsenceofStarIndiasubscriptionrevenueinthecurrentquarterduetotheStarIndiaTransaction5 Anincreaseinadvertisingrevenueduetogrowthinimpressions,partiallyoffs

31、etbylowerrates Highertechnologyanddistributioncosts Anincreaseinprogrammingandproductioncostsreflecting:Highersubscriber-basedlicensefeesattributabletorateincreasesforprogrammingtheHuluLiveTVserviceandmoresubscriberstobundleswiththird-partyofferings,includingpremiumadd-ons TheabsenceofStarIndiaprogr

32、ammingcostsinthecurrentquarterduetotheStarIndiaTransactionKeyMetrics-SecondQuarterofFiscal2025ComparisontoFirstQuarterofFiscal2025Inadditiontorevenue,costsandoperatingincome,managementusesthefollowingkeymetrics(1)toanalyzetrendsandevaluatetheoverallperformanceofourDisney+andHuludirect-to-consumer(DT

33、C)productofferings,andwebelievethesemetricsareusefultoinvestorsinanalyzingthebusiness.Thefollowingtablesandrelateddiscussionareonasequentialquarterbasis.Paidsubscribersat:(inmillions)March29,2025December28,2024ChangeDisney+Domestic(U.S.andCanada)57.856.8 2%International68.267.8 1%TotalDisney+(2)126.

34、0124.6 1%HuluSVODOnly50.349.0 3%LiveTV+SVOD4.44.6(4)%TotalHulu(2)54.753.6 2%AverageMonthlyRevenuePerPaidSubscriberforthequarterended:March29,2025December28,2024ChangeDisney+Domestic(U.S.andCanada)$8.06$7.99 1%International7.527.19 5%Disney+7.777.55 3%HuluSVODOnly12.3612.52(1)%LiveTV+SVOD99.9499.22 1

35、%(1)Seediscussiononpage16DTCProductDescriptionsandKeyDefinitions(2)TotalmaynotequalthesumofthecolumnduetoroundingDomesticDisney+averagemonthlyrevenueperpaidsubscriberincreasedfrom$7.99to$8.06duetoincreasesinpricing,partiallyoffsetbyloweradvertisingrevenue.InternationalDisney+averagemonthlyrevenueper

36、paidsubscriberincreasedfrom$7.19to$7.52duetotheimpactofsubscribermixshiftsandincreasesinpricing,partiallyoffsetbyanunfavorableforeignexchangeimpact.HuluSVODOnlyaveragemonthlyrevenueperpaidsubscriberdecreasedfrom$12.52to$12.36duetoloweradvertisingrevenue,partiallyoffsetbyincreasesinpricing.6HuluLiveT

37、V+SVODaveragemonthlyrevenueperpaidsubscriberincreasedfrom$99.22to$99.94duetoincreasesinpricing,partiallyoffsetbyloweradvertisingrevenue.ContentSales/LicensingandOtherContentSales/LicensingandOtherrevenuesandoperatingincome(loss)wereasfollows:QuarterEndedChange($inmillions)March29,2025March30,2024Rev

38、enue$2,146$1,389 54%Operatingincome(loss)$153$(18)nmTheimprovementinoperatingresultswasdueto:HigherTV/VODdistributionresultsduetoanincreaseinsalesofepisodiccontentincludinganimpactfromthetimingofepisodesdelivered AnincreaseinhomeentertainmentdistributionresultsdrivenbytheperformanceofMoana2inthecurr

39、entquarterTheatricaldistributionresultswerecomparabletotheprior-yearquarter,asthecarryoverperformanceoffirstquarterreleases,Mufasa:TheLionKingandMoana2,waslargelyoffsetbytheresultsofsecondquarterreleases,SnowWhiteandCaptainAmerica:BraveNewWorld,includingthecostsoftheirinitialmarketingcampaigns.There

40、werenosignificanttitlesreleasedtheprior-yearquarter.SportsSportsrevenuesandoperatingincome(loss)wereasfollows:QuarterEndedChange($inmillions)March29,2025March30,2024RevenueESPNDomestic$4,155$3,866 7%International379341 11%4,5344,207 8%StarIndia105(100)%$4,534$4,312 5%Operatingincome(loss)ESPNDomesti

41、c$648$780(17)%International21 19 11%669 799(16)%StarIndia(27)100%Equityintheincomeofinvestees18 6 100%$687$778(12)%7DomesticESPNThedecreaseindomesticESPNoperatingresultsinthecurrentquartercomparedtotheprior-yearquarterreflected:Higherprogrammingandproductioncostsprimarilyattributabletoairingthreeadd

42、itionalCollegeFootballPlayoff(CFP)gamesaswellasoneadditionalNFLgameduetotiming Advertisingrevenuegrowthduetoincreasesinratesandaverageviewership.TheincreaseinadvertisingrevenueincludedabenefitfromairingadditionalCFPandNFLgames Amodestincreaseinaffiliaterevenuereflectinghighereffectiverates,largelyof

43、fsetbyfewersubscribersStarIndiaTheoperatinglossinStarIndiaintheprior-yearquarterreflectedIndianPremierLeaguecricketprogramming.KeyMetrics-SecondQuarterofFiscal2025ComparisontoFirstQuarterofFiscal2025Inadditiontorevenue,costsandoperatingincome,managementusesthefollowingkeymetrics(1)toanalyzetrendsand

44、evaluatetheoverallperformanceofourESPN+DTCproductoffering,andwebelievethesemetricsareusefultoinvestorsinanalyzingthebusiness.Thefollowingtableisonasequentialquarterbasis.March29,2025December28,2024ChangePaidsubscribersat:(inmillions)24.124.9(3)%AverageMonthlyRevenuePerPaidSubscriberforthequarterende

45、d:$6.58$6.36 3%(1)Seediscussiononpage16DTCProductDescriptionsandKeyDefinitionsESPN+averagemonthlyrevenueperpaidsubscriberincreasedfrom$6.36to6.58primarilyduetoincreasesinpricingandtheimpactofsubscribermixshifts.ExperiencesExperiencesrevenuesandoperatingincomewereasfollows:QuarterEndedChange($inmilli

46、ons)March29,2025March30,2024RevenueParks&ExperiencesDomestic$6,499$5,958 9%International1,441 1,522(5)%ConsumerProducts949 913 4%$8,889$8,393 6%OperatingincomeParks&ExperiencesDomestic$1,823$1,607 13%International225 292(23)%ConsumerProducts443 387 14%$2,491$2,286 9%8DomesticParksandExperiencesOpera

47、tingresultsatourdomesticparksandexperiencesincreasedcomparedtotheprior-yearquarterprimarilyduetogrowthatourdomesticparksandresortsand,toalesserextent,DisneyVacationClubandDisneyCruiseLinereflecting:Highervolumesattributabletoincreasesinpassengercruisedays,themeparkattendance,occupiedroomnightsandDis

48、neyVacationClubunitsales.AdditionalpassengercruisedaysreflectedthelaunchoftheDisneyTreasureinthefirstquarterofthecurrentyear Anincreaseinguestspendingduetohigherspendingatourthemeparks IncreasedcostsprimarilyattributabletothefleetexpansionatDisneyCruiseLineandinflationInternationalParksandExperience

49、sThedecreaseinoperatingincomeatourinternationalparksandexperienceswasattributabletoShanghaiDisneyResortandHongKongDisneylandResortduetolowerthemeparkattendanceandincreasedcosts.ConsumerProductsTheincreaseinoperatingincomeatconsumerproductswasduetohigherlicensingrevenue,includingabenefitfromthereleas

50、eofthelicensedgame,MarvelRivals.OTHERFINANCIALINFORMATIONRestructuringandImpairmentChargesChargesinthecurrentquarterwere$109millionforcontentimpairments.Chargesintheprior-yearquarterwere$2,052millionprimarilyforgoodwillimpairmentsrelatedtoStarIndiaandentertainmentlinearnetworks.InterestExpense,netIn

51、terestexpense,netwasasfollows:QuarterEnded($inmillions)March29,2025March30,2024ChangeInterestexpense$(471)$(501)6%Interestincome,investmentincomeandother125190(34)%Interestexpense,net$(346)$(311)(11)%Thedecreaseininterestexpensewasduetoloweraverageratesanddebtbalances,partiallyoffsetbyadecreaseincap

52、italizedinterest.Thedecreaseininterestincome,investmentincomeandotherwasduetoanunfavorablecomparisonrelatedtopensionandpostretirementbenefitcosts,otherthanservicecost,theimpactoflowercashandcashequivalentbalancesandnetinvestmentlossesinthecurrentquarter.9EquityintheIncomeofInvesteesEquityintheincome

53、ofinvesteeswasasfollows:QuarterEnded($inmillions)March29,2025March30,2024ChangeAmountsincludedinsegmentresults:Entertainment$124$138(10)%Sports186 100%EquityinthelossofIndiajointventure(103)nmAmortizationofTFCFCorporation(TFCF)intangibleassetsrelatedtoanequityinvestee(3)(3)%Equityintheincomeofinvest

54、ees$36$141(74)%Incomefromequityinvesteesdecreased$105million,to$36millionfrom$141million,duetolossesfromtheIndiajointventureinthecurrentquarter.IncomeTaxesTheeffectiveincometaxratewasasfollows:QuarterEndedMarch29,2025March30,2024Incomebeforeincometaxes$3,087$657 Incometax(benefit)expense(314)441 Eff

55、ectiveincometaxrate(10.2)%67.1%Theeffectiveincometaxrateinthecurrentquarterreflectedanon-cashtaxbenefitfromtheresolutionofaprior-yeartaxmatter.Theeffectiveincometaxrateintheprior-yearquarterreflectedanunfavorableimpactfromgoodwillimpairments,whicharenottaxdeductible,partiallyoffsetbyanon-cashtaxbene

56、fitinconnectionwiththeStarIndiaTransaction.Excludingtheimpactoftheseitems,theeffectiveincometaxratewouldbe22.7%inthecurrentquartercomparedto20.7%intheprior-yearquarter.NoncontrollingInterestsNetincomeattributabletononcontrollinginterestswasasfollows:QuarterEnded($inmillions)March29,2025March30,2024C

57、hangeNetincomeattributabletononcontrollinginterests$(126)$(236)47%ThedecreaseinnetincomeattributabletononcontrollinginterestswasduetocostsinconnectionwiththepurchaseofNBCUsinterestinHuluintheprior-yearquarterandlowerresultsatESPN,ShanghaiDisneyResortand,toalesserextent,HongKongDisneylandResort.Netin

58、comeattributabletononcontrollinginterestsisdeterminedonincomeafterroyaltiesandmanagementfees,financingcostsandincometaxes,asapplicable.10CashfromOperationsCashprovidedbyoperationsandfreecashflowwereasfollows:SixMonthsEnded($inmillions)March29,2025March30,2024ChangeCashprovidedbyoperations$9,958$5,85

59、1$4,107Investmentsinparks,resortsandotherproperty(4,328)(2,558)(1,770)Freecashflow(1)$5,630$3,293$2,337(1)FreecashflowisnotafinancialmeasuredefinedbyGAAP.ThemostcomparableGAAPmeasureiscashprovidedbyoperations.Seethediscussiononpages17through21.Cashprovidedbyoperationsincreased$4.1billionto$10.0billi

60、oninthecurrentperiodfrom$5.9billionintheprior-yearperioddrivenby:Lowertaxpaymentsinthecurrentperiodcomparedtotheprior-yearperiodduetopaymentsinthefirsthalfoffiscal2024forU.S.federalandCaliforniastateincometaxesrelatedtofiscal2023thathadbeendeferredpursuanttoreliefrelatedto2023winterstormsinCaliforni

61、a.Inaddition,fiscal2025U.S.federalandCaliforniastateincometaxpaymentshavebeendeferreduntilOctober2025pursuanttoreliefrelatedtothe2025wildfiresinCalifornia.Higheroperatingincomeand,toalesserextent,lowerspendingoncontentatEntertainmentCapitalExpendituresInvestmentsinparks,resortsandotherpropertywereas

62、follows:SixMonthsEnded($inmillions)March29,2025March30,2024Entertainment$(522)$(522)Sports(1)ExperiencesDomestic(3,022)(1,198)International(561)(466)TotalExperiences(3,583)(1,664)Corporate(223)(371)Totalinvestmentsinparks,resortsandotherproperty$(4,328)$(2,558)Capitalexpendituresincreasedto$4.3billi

63、onfrom$2.6billionduetohigherspendoncruiseshipfleetexpansionattheExperiencessegment.11DepreciationExpenseDepreciationexpensewasasfollows:SixMonthsEnded($inmillions)March29,2025March30,2024Entertainment$355$332Sports2122ExperiencesDomestic951850International379353TotalExperiences1,3301,203Corporate160

64、105Totaldepreciationexpense$1,866$1,66212THEWALTDISNEYCOMPANYCONDENSEDCONSOLIDATEDSTATEMENTSOFOPERATIONS(unaudited;$inmillions,exceptpersharedata)QuarterEndedSixMonthsEndedMarch29,2025March30,2024March29,2025March30,2024Revenues$23,621$22,083$48,311$45,632Costsandexpenses(20,115)(19,204)(40,727)(39,

65、817)Restructuringandimpairmentcharges(109)(2,052)(252)(2,052)Interestexpense,net(346)(311)(713)(557)Equityintheincomeofinvestees36141128322Incomebeforeincometaxes3,0876576,7473,528Incometaxes314(441)(702)(1,161)Netincome3,4012166,0452,367Netincomeattributabletononcontrollinginterests(126)(236)(216)(

66、476)Netincome(loss)attributabletoTheWaltDisneyCompany(Disney)$3,275$(20)$5,829$1,891Earnings(loss)pershareattributabletoDisney:Diluted$1.81$(0.01)$3.21$1.03Basic$1.81$(0.01)$3.22$1.03Weightedaveragenumberofcommonandcommonequivalentsharesoutstanding:Diluted1,8141,8341,8161,838Basic1,8081,8341,8101,83

67、313THEWALTDISNEYCOMPANYCONDENSEDCONSOLIDATEDBALANCESHEETS(unaudited;$inmillions,exceptpersharedata)March29,2025September28,2024ASSETSCurrentassetsCashandcashequivalents$5,852$6,002Receivables,net12,57112,729Inventories1,9992,022Contentadvances1,0632,097Othercurrentassets1,2502,391Totalcurrentassets2

68、2,73525,241Producedandlicensedcontentcosts31,82032,312Investments8,7944,459Parks,resortsandotherpropertyAttractions,buildingsandequipment79,72176,674Accumulateddepreciation(47,532)(45,506)32,18931,168Projectsinprogress5,7404,728Land1,1661,14539,09537,041Intangibleassets,net10,00610,739Goodwill73,313

69、73,326Otherassets10,07013,101Totalassets$195,833$196,219LIABILITIESANDEQUITYCurrentliabilitiesAccountspayableandotheraccruedliabilities$20,729$21,070Currentportionofborrowings6,4466,845Deferredrevenueandother6,8546,684Totalcurrentliabilities34,02934,599Borrowings36,44338,970Deferredincometaxes6,2986

70、,277Otherlong-termliabilities10,29710,851CommitmentsandcontingenciesEquityPreferredstockCommonstock,$0.01parvalue,Authorized4.6billionshares,Issued1.9billionshares59,19958,592Retainedearnings53,73349,722Accumulatedothercomprehensiveloss(2,877)(3,699)Treasurystock,atcost,63millionsharesatMarch29,2025

71、and47millionsharesatSeptember28,2024(5,716)(3,919)TotalDisneyShareholdersequity104,339100,696Noncontrollinginterests4,4274,826Totalequity108,766105,522Totalliabilitiesandequity$195,833$196,21914THEWALTDISNEYCOMPANYCONDENSEDCONSOLIDATEDSTATEMENTSOFCASHFLOWS(unaudited;$inmillions)SixMonthsEndedMarch29

72、,2025March30,2024OPERATINGACTIVITIESNetincome$6,045$2,367Depreciationandamortization2,6002,485Impairmentsofgoodwill,producedandlicensedcontentandotherassets2402,038Deferredincometaxes93(211)Equityintheincomeofinvestees(128)(322)Cashdistributionsreceivedfromequityinvestees79300Netchangeinproducedandl

73、icensedcontentcostsandadvances1,8891,699Equity-basedcompensation647675Other,net(35)(6)ChangesinoperatingassetsandliabilitiesReceivables(367)(156)Inventories(1)26Otherassets10(185)Accountspayableandotherliabilities(1,025)(1,075)Incometaxes(89)(1,784)Cashprovidedbyoperations9,9585,851INVESTINGACTIVITI

74、ESInvestmentsinparks,resortsandotherproperty(4,328)(2,558)Other,net(145)5Cashusedininvestingactivities(4,473)(2,553)FINANCINGACTIVITIESCommercialpaperborrowings(payments),net(791)42Borrowings1,057133Reductionofborrowings(2,913)(645)Dividends(905)(549)Repurchasesofcommonstock(1,785)(1,001)Acquisition

75、ofredeemablenoncontrollinginterests(8,610)Other,net(216)(194)Cashusedinfinancingactivities(5,553)(10,824)Impactofexchangeratesoncash,cashequivalentsandrestrictedcash(76)17Changeincash,cashequivalentsandrestrictedcash(144)(7,509)Cash,cashequivalentsandrestrictedcash,beginningofperiod6,10214,235Cash,c

76、ashequivalentsandrestrictedcash,endofperiod$5,958$6,72615DTCPRODUCTDESCRIPTIONSANDKEYDEFINITIONSProductofferingsIntheU.S.,Disney+,ESPN+andHuluSVODOnlyareeachofferedasastandaloneserviceoraspartofvariousmulti-productofferings.HuluLiveTV+SVODincludesDisney+andESPN+.Disney+isavailableinmorethan150countr

77、iesandterritoriesoutsidetheU.S.Dependingonthemarket,ourservicescanbepurchasedonourwebsitesorthroughthird-partyplatforms/appsorareavailableviawholesalearrangements.PaidsubscribersPaidsubscribersreflectsubscribersforwhichwerecognizedsubscriptionrevenue.Certainproductofferingsprovidetheoptionforanextra

78、membertobeaddedtoanaccount(extramemberadd-on).Theseextramembersarenotcountedaspaidsubscribers.Subscribersceasetobeapaidsubscriberasoftheireffectivecancellationdateorasaresultofafailedpaymentmethod.Subscriberstomulti-productofferingsintheU.S.arecountedasapaidsubscriberforeachoftheCompanysservicesincl

79、udedinthemulti-productoffering,andsubscriberstoHuluLiveTV+SVODarecountedasonepaidsubscriberforeachoftheHuluLiveTV+SVOD,Disney+andESPN+services.Subscribersincludethosewhoreceiveanentitlementtoaservicethroughwholesalearrangements,includingthoseforwhichtheserviceisavailabletoeachsubscriberofanexistingc

80、ontentdistributiontier.WhenweaggregatethetotalnumberofpaidsubscribersacrossourDTCstreamingservices,werefertothemaspaidsubscriptions.InternationalDisney+InternationalDisney+includestheDisney+serviceoutsidetheU.S.andCanada.AverageMonthlyRevenuePerPaidSubscriberHuluandESPN+averagemonthlyrevenueperpaids

81、ubscriberiscalculatedbasedontheaverageofthemonthlyaveragepaidsubscribersforeachmonthintheperiod.Themonthlyaveragepaidsubscribersiscalculatedasthesumofthebeginningofthemonthandendofthemonthpaidsubscribercount,dividedbytwo.Disney+averagemonthlyrevenueperpaidsubscriberiscalculatedusingadailyaverageofpa

82、idsubscribersfortheperiod.Revenueincludessubscriptionfees,advertising(excludingrevenueearnedfromsellingadvertisingspotstootherCompanybusinesses),premiumandfeatureadd-onrevenueandextramemberadd-onrevenuebutexcludesPay-Per-Viewrevenue.AdvertisingrevenuegeneratedbycontentononeDTCstreamingservicethatisa

83、ccessedthroughanotherDTCstreamingservicebysubscriberstobothstreamingservicesisallocatedbetweenbothstreamingservices.Theaveragerevenueperpaidsubscriberisnetofdiscountsonofferingsthatcarrymorethanoneservice.Revenueisallocatedtoeachservicebasedontherelativeretailorwholesalepriceofeachserviceonastandalo

84、nebasis.HuluLiveTV+SVODrevenueisallocatedtotheSVODservicesbasedonthewholesalepriceoftheHuluSVODOnly,Disney+andESPN+multi-productoffering.Ingeneral,wholesalearrangementshavealoweraveragemonthlyrevenueperpaidsubscriberthansubscribersthatweacquiredirectlyorthroughthird-partyplatforms.16NON-GAAPFINANCIA

85、LMEASURESThisearningsreleasepresentsdilutedEPSexcludingcertainitems(alsoreferredtoasadjustedEPS),totalsegmentoperatingincomeandfreecashflow.DilutedEPSexcludingcertainitems,totalsegmentoperatingincomeandfreecashflowareimportantfinancialmeasuresfortheCompanybutarenotfinancialmeasuresdefinedbyGAAP.Thes

86、emeasuresshouldbereviewedinconjunctionwiththemostcomparableGAAPfinancialmeasuresandarenotpresentedasalternativemeasuresofdilutedEPS,incomebeforeincometaxesorcashprovidedbyoperationsasdeterminedinaccordancewithGAAP.DilutedEPSexcludingcertainitems,totalsegmentoperatingincomeandfreecashflowaswehavecalc

87、ulatedthemmaynotbecomparabletosimilarlytitledmeasuresreportedbyothercompanies.OurdefinitionsandcalculationsofdilutedEPSexcludingcertainitems,totalsegmentoperatingincomeandfreecashflow,aswellasquantitativereconciliationsofeachofthesemeasurestothemostdirectlycomparableGAAPfinancialmeasure,areprovidedb

88、elow.TheCompanyisnotprovidingtheforward-lookingmeasurefordilutedEPS,whichisthemostdirectlycomparableGAAPmeasuretodilutedEPSexcludingcertainitems,oraquantitativereconciliationofforward-lookingdilutedEPSexcludingcertainitemstothatmostdirectlycomparableGAAPmeasure.TheCompanyisunabletopredictorestimatew

89、ithreasonablecertaintytheultimateoutcomeofcertainsignificantitemsrequiredforsuchGAAPmeasurewithoutunreasonableeffort.InformationaboutotheradjustingitemsthatiscurrentlynotavailabletotheCompanycouldhaveapotentiallyunpredictableandsignificantimpactonfutureGAAPfinancialresults.DilutedEPSexcludingcertain

90、itemsTheCompanyusesdilutedEPSexcluding(1)certainitemsaffectingcomparabilityofresultsfromperiodtoperiodand(2)amortizationofTFCFandHuluintangibleassets,includingpurchaseaccountingstep-upadjustmentsforreleasedcontent,tofacilitatetheevaluationoftheperformanceoftheCompanysoperationsexclusiveoftheseitems,

91、andtheseadjustmentsreflecthowseniormanagementisevaluatingsegmentperformance.TheCompanybelievesthatprovidingdilutedEPSexclusiveofcertainitemsimpactingcomparabilityisusefultoinvestors,particularlywheretheimpactoftheexcludeditemsissignificantinrelationtoreportedearningsandbecausethemeasureallowsforcomp

92、arabilitybetweenperiodsoftheoperatingperformanceoftheCompanysbusinessandallowsinvestorstoevaluatetheimpactoftheseitemsseparately.TheCompanyfurtherbelievesthatprovidingdilutedEPSexclusiveofamortizationofTFCFandHuluintangibleassetsassociatedwiththeacquisitionin2019isusefultoinvestorsbecausetheTFCFandH

93、uluacquisitionwasconsiderablylargerthantheCompanyshistoricacquisitionswithasignificantlygreateracquisitionaccountingimpact.17ThefollowingtablereconcilesreporteddilutedEPStodilutedEPSexcludingcertainitemsforthesecondquarter:($inmillionsexceptEPS)Pre-TaxIncome/LossTaxBenefit/Expense(1)After-TaxIncome/

94、Loss(2)DilutedEPS(3)Changevs.prior-yearperiodQuarterEndedMarch29,2025Asreported$3,087$314$3,401$1.81nmExclude:Resolutionofaprior-yeartaxmatter(1,016)(1,016)(0.56)AmortizationofTFCFandHuluintangibleassetsandfairvaluestep-uponfilmandtelevisioncosts(4)396(92)3040.16Restructuringandimpairmentcharges(5)1

95、09(25)840.05Excludingcertainitems$3,592$(819)$2,773$1.45 20%QuarterEndedMarch30,2024Asreported$657$(441)$216$(0.01)Exclude:Restructuringandimpairmentcharges(5)2,052(121)1,9311.06AmortizationofTFCFandHuluintangibleassetsandfairvaluestep-uponfilmandtelevisioncosts(4)434(101)3330.17Excludingcertainitem

96、s$3,143$(663)$2,480$1.21(1)Taxbenefit/expenseisdeterminedusingthetaxrateapplicabletotheindividualitem.(2)Beforenoncontrollinginterestshare.(3)Netofnoncontrollinginterestshare,whereapplicable.Totalmaynotequalthesumofthecolumnduetorounding.(4)Forthecurrentquarter,intangibleassetamortizationwas$327mill

97、ion,step-upamortizationwas$66millionandamortizationofintangibleassetsrelatedtoaTFCFequityinvesteewas$3million.Fortheprior-yearquarter,intangibleassetamortizationwas$362million,step-upamortizationwas$69millionandamortizationofintangibleassetsrelatedtoaTFCFequityinvesteewas$3million.(5)Amountsforthecu

98、rrentquarterreflectcontentimpairments($109million).Amountsfortheprior-yearquarterincludeimpairmentsofgoodwill($2,038million).18ThefollowingtablereconcilesreporteddilutedEPStodilutedEPSexcludingcertainitemsforthesix-monthperiod:($inmillionsexceptEPS)Pre-TaxIncome/LossTaxBenefit/Expense(1)After-TaxInc

99、ome/Loss(2)DilutedEPS(3)Changevs.prioryearSixMonthsEndedMarch29,2025:Asreported$6,747$(702)$6,045$3.21 100%Exclude:AmortizationofTFCFandHuluintangibleassetsandfairvaluestep-uponfilmandtelevisioncosts(4)793(184)6090.32 Restructuringandimpairmentcharges(5)2521884400.25Resolutionofaprior-yeartaxmatter(

100、1,016)(1,016)(0.56)Excludingcertainitems$7,792$(1,714)$6,078$3.22 32%SixMonthsEndedMarch30,2024:Asreported$3,528$(1,161)$2,367$1.03Exclude:Restructuringandimpairmentcharges(5)2,052(121)1,9311.06AmortizationofTFCFandHuluintangibleassetsandfairvaluestep-uponfilmandtelevisioncosts(4)885(206)6790.36Excl

101、udingcertainitems$6,465$(1,488)$4,977$2.44(1)Taxbenefit/expenseisdeterminedusingthetaxrateapplicabletotheindividualitem.(2)Beforenoncontrollinginterestshare.(3)Netofnoncontrollinginterestshare,whereapplicable.Totalmaynotequalthesumofthecolumnduetorounding.(4)Forthecurrentperiod,intangibleassetamorti

102、zationwas$654million,step-upamortizationwas$133millionandamortizationofintangibleassetsrelatedtoaTFCFequityinvesteewas$6million.Fortheprior-yearperiod,intangibleassetamortizationwas$742million,step-upamortizationwas$137millionandamortizationofintangibleassetsrelatedtoaTFCFequityinvesteewas$6million.

103、(5)AmountsforthecurrentperiodincludeimpairmentchargesrelatedtotheStarIndiaTransaction($143million)andcontent($109million).Taxexpenseinthecurrentperiodincludestheestimatedtaximpactofthesechargesandanon-cashtaxchargeof$244millionrelatedtotheStarIndiaTransaction.Amountsfortheprior-yearperiodincludeimpa

104、irmentsofgoodwill($2,038million).19TotalsegmentoperatingincomeTheCompanyevaluatestheperformanceofitsoperatingsegmentsbasedonsegmentoperatingincome,andmanagementusestotalsegmentoperatingincome(thesumofsegmentoperatingincomefromalloftheCompanyssegments)asameasureoftheperformanceofoperatingbusinessesse

105、paratefromnon-operatingfactors.TheCompanybelievesthatinformationabouttotalsegmentoperatingincomeassistsinvestorsbyallowingthemtoevaluatechangesintheoperatingresultsoftheCompanysportfolioofbusinessesseparatefromnon-operationalfactorsthataffectnetincome,thusprovidingseparateinsightintobothoperationsan

106、dotherfactorsthataffectreportedresults.Thefollowingtablereconcilesincomebeforeincometaxestototalsegmentoperatingincome:QuarterEndedSixMonthsEnded($inmillions)March29,2025March30,2024ChangeMarch29,2025March30,2024ChangeIncomebeforeincometaxes$3,087$657 100%$6,747$3,528 91%Add(subtract):Corporateandun

107、allocatedsharedexpenses395391(1)%855699(22)%EquityinthelossofIndiajointventure103nm136nmRestructuringandimpairmentcharges1092,052 95%2522,052 88%Interestexpense,net346311(11)%713557(28)%AmortizationofTFCFandHuluintangibleassetsandfairvaluestep-uponfilmandtelevisioncosts396434 9%793885 10%Totalsegmen

108、toperatingincome$4,436$3,845 15%$9,496$7,721 23%FreecashflowTheCompanyusesfreecashflow(cashprovidedbyoperationslessinvestmentsinparks,resortsandotherproperty),amongothermeasures,toevaluatetheabilityofitsoperationstogeneratecashthatisavailableforpurposesotherthancapitalexpenditures.Managementbelieves

109、thatinformationaboutfreecashflowprovidesinvestorswithanimportantperspectiveonthecashavailabletoservicedebtobligations,makestrategicacquisitionsandinvestmentsandpaydividendsorrepurchaseshares.ThefollowingtablepresentsasummaryoftheCompanysconsolidatedcashflows:QuarterEndedSixMonthsEnded($inmillions)Ma

110、rch29,2025March30,2024March29,2025March30,2024Cashprovidedbyoperations$6,753$3,666$9,958$5,851Cashusedininvestingactivities(1,898)(1,307)(4,473)(2,553)Cashusedinfinancingactivities(4,556)(2,818)(5,553)(10,824)Impactofexchangeratesoncash,cashequivalentsandrestrictedcash77(62)(76)17Changeincash,casheq

111、uivalentsandrestrictedcash376(521)(144)(7,509)Cash,cashequivalentsandrestrictedcash,beginningofperiod5,5827,2476,10214,235Cash,cashequivalentsandrestrictedcash,endofperiod$5,958$6,726$5,958$6,72620ThefollowingtablereconcilestheCompanysconsolidatedcashprovidedbyoperationstofreecashflow:QuarterEndedSi

112、xMonthsEnded($inmillions)March29,2025March30,2024ChangeMarch29,2025March30,2024ChangeCashprovidedbyoperations$6,753$3,666$3,087$9,958$5,851$4,107 Investmentsinparks,resortsandotherproperty(1,862)(1,259)(603)(4,328)(2,558)(1,770)Freecashflow$4,891$2,407$2,484$5,630$3,293$2,33721FORWARD-LOOKINGSTATEME

113、NTSCertainstatementsandinformationinthisearningsreleasemayconstitute“forward-lookingstatements”withinthemeaningofthePrivateSecuritiesLitigationReformActof1995,includingstatementsregardingourexpectations,beliefs,plans,financialprospects,trendsoroutlookandguidance;financialorperformanceestimatesandexp

114、ectations(includingestimatedorexpectedrevenues,earnings,operatingincome,cashposition,costs,expensesandimpactofcertainitems)andexpecteddrivers;direct-to-consumerprospects,includingexpectationsforsubscribers;prospectsandconsumerdemandforourtravelandentertainmentofferings;businessandotherplans;strategi

115、cprioritiesandinitiativesandotherstatementsthatarenothistoricalinnature.Anyinformationthatisnothistoricalinnatureincludedinthisearningsreleaseissubjecttochange.Thesestatementsaremadeonthebasisofmanagementsviewsandassumptionsregardingfutureeventsandbusinessperformanceasofthetimethestatementsaremade.M

116、anagementdoesnotundertakeanyobligationtoupdatethesestatements.Actualresultsmaydiffermateriallyfromthoseexpressedorimplied.SuchdifferencesmayresultfromactionstakenbytheCompany,includingrestructuringorstrategicinitiatives(includingcapitalinvestments,assetacquisitionsordispositions,neworexpandedbusines

117、slinesorcessationofcertainoperations),ourexecutionofourbusinessplans(includingthecontentwecreateandIPweinvestin,ourpricingdecisions,ourcoststructureandourmanagementandotherpersonneldecisions),ourabilitytoquicklyexecuteoncostrationalizationwhilepreservingrevenue,thediscoveryofadditionalinformationoro

118、therbusinessdecisions,aswellasfromdevelopmentsbeyondtheCompanyscontrol,including:theoccurrenceofsubsequentevents;deteriorationindomesticandglobaleconomicconditionsorfailureofconditionstoimproveasanticipated;deteriorationinorpressuresfromcompetitiveconditions,includingcompetitiontocreateoracquirecont

119、ent,competitionfortalentandcompetitionforadvertisingrevenue;consumerpreferencesandacceptanceofourcontent,offerings,pricingmodelandpriceincreases,andcorrespondingsubscriberadditionsandchurn,andthemarketforadvertisingsalesonourDTCstreamingservicesandlinearnetworks;healthconcernsandtheirimpactonourbusi

120、nessesandproductions;international,includingtariffsandothertradepolicies,politicalormilitarydevelopments;regulatoryandlegaldevelopments;technologicaldevelopments;labormarketsandactivities,includingworkstoppages;adverseweatherconditionsornaturaldisasters;andavailabilityofcontent.Suchdevelopmentsmayfu

121、rtheraffectentertainment,travelandleisurebusinessesgenerallyandmay,amongotherthings,affect(orfurtheraffect,asapplicable):ouroperations,businessplansorprofitability,includingdirect-to-consumerprofitability;demandforourproductsandservices;theperformanceoftheCompanyscontent;ourabilitytocreateorobtainde

122、sirablecontentatorunderthevalueweassignthecontent;theadvertisingmarketforprogramming;taxation;andperformanceofsomeorallCompanybusinesseseitherdirectlyorthroughtheirimpactonthosewhodistributeourproducts.AdditionalfactorsaresetforthintheCompanysmostrecentAnnualReportonForm10-K,includingunderthecaption

123、s“RiskFactors,”“ManagementsDiscussionandAnalysisofFinancialConditionandResultsofOperations,”and“Business,”quarterlyreportsonForm10-Q,includingunderthecaptions“RiskFactors”and“ManagementsDiscussionandAnalysisofFinancialConditionandResultsofOperations,”andsubsequentfilingswiththeSecuritiesandExchangeC

124、ommission.Theterms“Company,”“we,”and“our”areusedinthisreporttorefercollectivelytotheparentcompanyandthesubsidiariesthroughwhichourvariousbusinessesareactuallyconducted.22PREPAREDEARNINGSREMARKSANDCONFERENCECALLINFORMATIONInconjunctionwiththisrelease,TheWaltDisneyCompanywillpostpreparedmanagementremarks(ExecutiveCommentary)