Walt Disney Company (the) · NYSE:DIS
Walt Disney Company (the) — Q2 2024 Earnings Presentation
24 slides from Walt Disney Company (the)'s earnings presentation, May 7, 2024
Slide 1: Q2'24 Earnings Presentation
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements in this presentation may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our expectations, beliefs, plans, financial prospects, trends or outlook and guida
Slide 3: On Track to Meet or Exceed our Fiscal 2024 Guidance
On Track to Meet or Exceed our Fiscal 2024 Guidance a g We are now targeting 25% growth We still expect to generate over On a total company basis, in diluted EPS excluding certain $8 billion in free cash flow!) we remain positioned to exceed items this fiscal year, exceeding this fiscal year our $7.
Slide 4: Q2 Results for Fiscal 2024
Q? Results for Fiscal 2024 (In Billions, Except Per Share Amounts) $21.8 $22.1 $3.8 $1.21 $3.3 $0.93 $2.1 $0.69 $0.7 a Q2'23 Q2'24 Q2'23 Q2'24 Q2'23 Q2'24 ($0.01) Q2'23 Q2'24 Q2'23 Q2'24 Revenues Income Before Total Segment Diluted EPS Diluted EPS Income Taxes Operating Income") Excluding Certain It
Slide 5: Recent Business Highlights
Recent Business Highlights ABC is the #1 entertainment broadcast network for the 5% consecutive season") The 2024 NCAA Women’s Championship was the most-viewed women’s college basketball game ever and ESPN platforms’ most- viewed college basketball game (men’s or women’s) on record!) ESPN had a fant
Slide 6: Q2 Entertainment Results
Q? Entertainment Results {In Billions) Linear Networks Revenues * Decrease in domestic operating income vs. the prior year was due to: Linear Networks com $5.6 * Lower affiliate revenue due to a decrease in subscribers, including the impact Direct-to-Consumer - of the non-renewal of carriage of cert
Slide 7: On the Path to Sustained Streaming Profitability & Growth
On the Path to Sustained Streaming Profitability & Growth This is the first quarter that our Entertainment DTC business was profitable, and while we anticipate softer results in Q3 driven by Disney+ Hotstar, we expect streaming to be a growth driver for the company in the future iSNEp+ Sk ( “Diienep
Slide 8: Entertainment DTC Quarterly Results
Entertainment DTC Quarterly Results (In Billions) * In Q2’24, Entertainment DTC generated $47 million in operating income, an improvement of over $600 million vs. the prior year and ~$185 million vs. Q1’24 * Entertainment DTC revenue increased 13% vs. the prior year and 2% vs. Q1’24 Operating Income
Slide 9: Q2 Disney+ Core Subscribers & ARPU
Q2 Disney+ Core Subscribers & ARPU (Paid Subscribers in Millions and Average Monthly Revenue per Paid Subscriber (ARPU) in USD) Ss Q2’24 vs. ae . “Pienep+ Domestic Subscribers 953 quza 46.3 46.1 54.0 47.7 47.9 Q2'23 Qi'24 Q2'24 Oo. . . “Piengp+ International!) Subscribers 5.0 1.6) me 65.2 63.6 + (1.
Slide 10: Q2 Hulu Subscribers & ARPU
Q?2 Hulu Subscribers & ARPU (Paid Subscribers in Millions and Average Monthly Revenue per Paid Subscriber (ARPU) in USD) hulu subscrib a | ubscribers 7 , oz23 aa'24 * Total Hulu subscribers increased by 0.5 million vs. the prior quarter Total Hulu 48.2 49.7 50-2 a 105 LiveTV + SVOD +0.1 (0.1) * Hulu
Slide 11: Q2 Sports Results
Q2 Sports Results {In Billions) Revenues ESPN Domestic ESPN Domestic * Operating income decreased vs. the prior year driven by: ESPN International $3.7 $3.9 < Bbibcrease: im ‘Programming: & production costs as a result of airing an additional College Football Playoff (CFP) game in the Star India cur
Slide 12: ESPN Tile on Disney+
ESPN Tile on Disney+ ) “Prenept Limited news, info, and originals; sampling of live events) Expected Launch: By the end of calendar 2024 Creating Consumer Choice by Increasing Distribution Across the Spectrum ESPN+ Light sports offering; included in Disney Trio Bundle() Already in Service Entry-leve
Slide 13: Q2 Experiences Results
Q2 Experiences Results (In Billions) Domestic Parks & Experiences Revenues . * Higher results vs. the prior year were due to increases at Walt Disney World and Domestic Parks & $6.0 Disney Cruise Line, partially offset by lower results at Disneyland Resort Experiences $5.6 . . ; . . ° Increase at Wa
Slide 14: Focusing on Turbocharging Our Experiences Business
Focusing on Turbocharging Our Experiences Business with Several Key Openings in 2024 Summer 2024 at December 21, 2024 June 6, 2024 June 6, 2024 FanepWorld (Maiden Voyage) Denep iki se 2024 at se be dd toy cae Dieowry CRUISE LINE Disneyland. Dewey CRUISE LINE
Slide 15: Appendix
APPENDIX ©Disney Second Fiscal Quarter Ended March 3! 14
Slide 16: Select Upcoming Theatrical Releases
©Disney Select Upcoming Theatrical Releases (Reflects publicly announced planned releases as of May 7, 2024; list is not exhaustive; subject to change) May 10, 2024 Kingdom of the Planet of the Apes 20th Century May 31, 2024 Young Woman and the Sea Disney June 14, 2024 Inside Out 2 Pixar June 21, 20
Slide 17: Select Upcoming Disney+ and Hulu Releases
Select Upcoming Disney+ and Hulu Releases (Reflects publicly announced planned domestic releases as of May 7, 2024; list is not exhaustive; subject to change) May 8 Let It Be Disney Disney+ Unscripted Film May 10 Doctor Who Disney Branded Television Disney+ Scripted Series May 15 Queen Rock Montreal
Slide 18: Fiscal 2024 — Selected Sports Timing Comparisons
Fiscal 2024 — Selected Sports Timing Comparisons (As of May 7, 2024; items are not exhaustive; subject to change} Ql Q2 No Big 10 renewal in FY24 (held rights in Q1’23) Q3 a4 ICC T20 in FY24 vs. in Q1'23 New SEC deal begins Net shift of 1 College Football Playoff game, including 2 semi-final games,
Slide 19: Upcoming Parks and Experiences Openings & Events
Upcoming Parks and Experiences Openings & Events (Reflects publicly announced planned openings and events as of May 7, 2024; list is not exhaustive) June 6, 2024 Fantasy Springs Tokyo Disney Resort June 6, 2024 Disney Lookout Cay at Lighthouse Point Disney Cruise Line June 10, 2024 EPCOT CommuniCore
Slide 20: DTC Product Descriptions and Key Definitions
DTC Product Descriptions and Key Definitions Product offerings In the U.S., Disney+, ESPN+ and Hulu SVOD Only are each offered as a standalone service or together as part of various multi-product offerings. Hulu Live TV + SVOD includes Disney+ and ESPN+. Disney+ is available in more than 150 countri
Slide 21: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation includes historical diluted EPS excluding certain items and total segment operating income and forward-looking free cash flow, all of which are important financial measures for the Company, but are not financial measures defined by GAAP. These measures s
Slide 22: Reconciliation of Diluted EPS Excluding Certain Items for Q2
Reconciliation of Diluted EPS Excluding Certain Items for Q2 (In Millions except EPS) The following table reconciles reported diluted EPS to diluted EPS excluding certain items for the second quarter: (1) (2) (3) 2) (5) (6) (in millions except EPS) Quarter Ended March 30, 2024 As reported Exclude: R
Slide 23: Reconciliation of Total Segment Operating Income for Q2
Reconciliation of Total Segment Operating Income for Q2 (In Millions) The following table reconciles income before income taxes to total segment operating income ($ in millions): Quarter Ended March 30, 2024 April 1, 2023 Change Income before income taxes $657 $2,123 (69%) Add (subtract): Corporate
Slide 24: Reconciliation of Free Cash Flow
Reconciliation of Free Cash Flow (In Billions) The following table reconciles the Company’s consolidated estimated forward-looking cash provided by operations to estimated forward-looking free cash flow for full year fiscal 2024 (estimated $ in billions): Full year fiscal 2024 Cash provided by opera
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