United Parks & Resorts Q2 rev down 1.5% to $490.2mln, attendance up 0.8%.

• Attendance: 6.2 million guests, up 0.8% from Q2 2024 • Total revenue: $490.2 million, down 1.5% from Q2 2024 • Net income: $80.1 million, down 12.1% from Q2 2024 • Adjusted EBITDA: $206.3 million, down 5.4% from Q2 2024 • Total revenue per capita: $78.64, down 2.2% from Q2 2024 • Admission per capita: $41.03, down 3.9% from Q2 2024 • In-park per capita spending: $37.61, down 0.4% from Q2 2024

Walt Disney (NYSE: DIS) reported its financial results for the third quarter of fiscal year 2025, highlighting significant growth in its Direct-to-Consumer streaming segment. The company’s non-GAAP earnings per share (EPS) surged to $1.61, surpassing analyst expectations by $0.16. Revenue (GAAP) stood at $23.7 billion, narrowly missing consensus estimates by 0.18% [1].

A key highlight was the operating profit of $346 million in the Direct-to-Consumer streaming segment, a notable improvement from a loss in the previous year. This was driven by increased subscribers to Disney+ and Hulu. The company reported 127.8 million Disney+ subscribers, up 1.0% sequentially, with international subscriptions rising by 2%. Hulu subscriptions grew to 55.5 million [1].

The Experiences segment, which includes theme parks, resorts, and cruise lines, saw operating income rise by 13%, contributing significantly to the overall segment operating income increase of 8% to $4.6 billion. Domestic parks and experiences delivered $1.65 billion in segment operating income, up 22%, while international parks posted a 3% drop in operating income due to lower attendance and increased costs [1].

However, the Entertainment segment faced challenges, with operating income falling 15% to $1.02 billion (non-GAAP). Linear networks, including traditional cable TV channels, experienced a 28% decrease in operating income due to declining subscribers and weaker advertising rates. Content sales and licensing also posted a $21 million GAAP operating loss, largely due to recent film releases not meeting expectations and higher film cost write-downs [1].

Disney continues to invest heavily in its parks and streaming services. The company expects to add over 10 million new streaming subscriptions in Q4 FY2025, mostly through Hulu, and anticipates 8% growth in Experiences segment operating income. Management remains focused on improving streaming profitability and expanding its park experiences [1].

In summary, Disney's Q3 2025 results show strong growth in streaming, with notable challenges in the Entertainment segment. The company's strategic focus on streaming and park expansions is expected to drive future growth, although regulatory and market uncertainties may impact performance.

References:
[1] The Globe and Mail. (2025, August 6). Disney Q3 EPS Jumps 16%. Retrieved from https://www.theglobeandmail.com/investing/markets/stocks/DIS/pressreleases/33932929/disney-q3-eps-jumps-16/