Advanced Television

Disney+ adds 1.4m subs in Q2; new theme park

May 7, 2025

By Nik Roseveare

The Walt Disney Company has reported that Q2 2025 revenue rose by 7 per cent year-on-year to reach $23.6 billion (€20.7bn), beating expectations.

The number of subscribers to the company’s Disney+ and Hulu streaming services rose by 2.5 million (combined) from the previous quarter to 180.7 million, while the number of those subscribed to just Disney+ increased by 1.4 million to 126 million. The company partially attributed the success of Disney+ on the impact from the timing of episodes delivered, and the performance of its Moana 2 movie.

Domestic Disney+ average monthly revenue per paid subscriber increased from $7.99 to $8.06 due to increases in pricing, partially offset by lower advertising revenue. International Disney+ average monthly revenue per paid subscriber also increased – from $7.19 to $7.52 – attributed to the impact of subscriber mix shifts and increases in pricing, partially offset by an unfavourable foreign exchange impact.

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. Hulu Live TV + SVoD average monthly revenue per paid subscriber increased from $99.22 to $99.94 due to increases in pricing, partially offset by lower advertising revenue.

Further financial highlights included:

  • Income before income taxes increased $2.4 billion for Q2 to $3.1 billion
  • Total segment operating income increased 15 per cent for Q2 to $4.4 billion
  • Diluted earnings per share (EPS) for Q2 improved to $1.81 from a loss per share of $0.01 in Q2 fiscal 2024, and adjusted EPS increased 20 per cent for Q2 to $1.45 from $1.21 in Q2 fiscal 2024

Key points from Q2:

  • Entertainment: Segment operating income of $1.3 billion, a $0.5 billion increase versus Q2 fiscal 2024
    • Direct-to-Consumer operating income increased $289 million to $336 million
    • Linear Networks operating income grew 2 per cent; year-over-year growth includes a comparison to $89 million of operating income in Q2 fiscal 2024 from Star India
  • Sports: Segment operating income of $687 million, a decrease of $91 million versus Q2 fiscal 2024
    • Higher programming and production costs primarily due to airing three additional College Football Playoff games and an additional NFL game
    • Sports revenue increased 5 per cent, reflecting 7 per cent Domestic ESPN revenue growth
    • Domestic advertising revenue growth of 29 per cent, reflecting a 16 ppt benefit from a change in format of the College Football Playoff and airing additional College Football Playoff and NFL games
    • Sports operating income was adversely impacted by a write-off due to exiting the Venu joint venture
  • Experiences: Segment operating income of $2.5 billion, an increase of $0.2 billion versus Q2 fiscal 2024
    • Domestic Parks & Experiences operating income grew 13 per cent to $1.8 billion
    • Consumer Products operating income grew 14 per cent to $0.4 billion
  • Share Repurchases of $1 billion in the quarter, keeping the company on pace to repurchase $3 billion for the year

The Walt Disney Company CEO, Bob Iger, commented: ““Our outstanding performance this quarter—with adjusted EPS up 20 per cent from the prior year driven by our Entertainment and Experiences businesses—underscores our continued success building for growth and executing across our strategic priorities. Following an excellent first half of the fiscal year, we have a lot more to look forward to, including our upcoming theatrical slate, the launch of ESPN’s new DTC offering, and an unprecedented number of expansion projects underway in our Experiences segment. Overall, we remain optimistic about the direction of the company and our outlook for the remainder of the fiscal year.”

Commenting on the results, Dan Larkman, CEO of Keynes Digital, a provider of analysis on the streaming and advertising sectors, commented: “Disney’s stronger-than-expected results show the resilience of its content library and bundling strategy – even as ESPN continues to lose traction. While ESPN+ still doesn’t offer live ESPN and the UFC contract expiration leaves a clear dent in the sports revenue model, the company’s broader ecosystem, particularly O&O inventory through Hulu and Disney+, is carrying the momentum. Their self-serve ads manager, however, has yet to gain any real market attention, and in a world where advertisers demand flexibility and access, that’s a missed opportunity.”

Abu Dhabi theme park

Menawhile, The Walt Disney Company and Miral, an Abu Dhabi-based creator of immersive destinations and experiences, have announced an agreement to create a Disney theme park resort in Abu Dhabi, United Arab Emirates.

The waterfront resort will be located on Yas Island, a destination for entertainment and leisure, connecting travellers from the Middle East and Africa, India, Asia, Europe, and beyond. It will be the seventh Disney theme park resort.

“Abu Dhabi is a place where heritage meets innovation, where we preserve our past while designing the future,” commented His Excellency Mohamed Khalifa Al Mubarak, Chairman at Miral. “The collaboration between Abu Dhabi and Disney demonstrates the remarkable results of combining visionary leadership and creative excellence. What we are creating with Disney in Abu Dhabi is a whole new world of imagination — an experience that will inspire generations across the region and the world, creating magical moments and memories that families will treasure forever. Through the development of unique attractions and experiences, Abu Dhabi continues to be a destination of choice for the world.”

“This is a thrilling moment for our company as we announce plans to build an exciting Disney theme park resort in Abu Dhabi, whose culture is rich with an appreciation of the arts and creativity,” said Iger. “As our seventh theme park destination, it will rise from this land in spectacular fashion, blending contemporary architecture with cutting edge technology to offer guests deeply immersive entertainment experiences in unique and modern ways. Disneyland Abu Dhabi will be authentically Disney and distinctly Emirati – an oasis of extraordinary Disney entertainment at this crossroads of the world that will bring to life our timeless characters and stories in many new ways and will become a source of joy and inspiration for the people of this vast region to enjoy for generations to come.”

“This groundbreaking resort destination represents a new frontier in theme park development,” said Josh D’Amaro, Chairman, Disney Experiences. “Our resort in Abu Dhabi will be the most advanced and interactive destination in our portfolio. The location of our park is incredibly unique – anchored by a beautiful waterfront – which will allow us to tell our stories in completely new ways. This project will reach guests in a whole new part of the world, welcoming more families to experience Disney than ever before. Ultimately, it will be a celebration of what’s possible when creativity and progress come together.”

“Bringing a Disney theme park resort to Yas Island marks a historic milestone in our journey to further advance the island’s position as a global destination for exceptional entertainment and leisure,” added Mohamed Abdalla Al Zaabi, Group CEO, Miral. “Together, we are creating a place of boundless innovation, where the vision of our leadership continues to inspire the world.” The development of unique experiences will support sustained economic growth in Abu Dhabi and beyond.

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