6 August 2025
If you are covering Disney’s latest financial results, please find below a comment from Ben Barringer, head of technology research at Quilter Cheviot:
“Disney produced a solid set of results in its latest figures, with the key areas of the business beating market expectations. Revenues in the Parks business were up 8% thanks to the good timing of Easter as part of these figures, as well as increasing capacity with their cruise ships, while the international parks also delivered good growth which wasn’t necessarily expected.
“Disney+ was also better than expected in the level of profit it delivered, which when combined with good cost control and a share buyback, gives management enough room to carry out a share buyback and raise guidance for its expected growth in earnings per share. This should all lead to a re-rating in the share price.
“However, linear television continues to decline. While it is a well-trodden narrative, the decline is far steeper than people were expecting and is weighing on the entertainment division. While the decline will continue, Disney will need to ensure that decline doesn’t continue to accelerate. It may help to explain why it is expanding its NFL coverage via the purchase of its media division, as it looks to increase its presence in other markets to make up for traditional TV disappointing.
“Ultimately, these are a good set of results for Disney and Bob Iger and his management team are doing a good job since his return to the top of the helm. However, the business remains exposed to the health of the US economy so concerns around it will be watched closely by investors. There are better defensive entertainment companies out there, such as Netflix, should investors be looking for exposure to the film and TV world.”
