“We are pleased with our creative success and financial performance in Q3 as we continue to execute across our strategic priorities,” said Robert A. Iger, CEO of The Walt Disney Company, as the company released its fiscal third quarter financial results on Wednesday.
But, just how did the ABC and cable TV assets in its Domestic Networks division perform? Difficult comparisons due to strong political advertising one year ago clouded the results.
Entertainment revenue for Disney inched upward by 1%, to $10.7 billion from $10.58 billion. But, segment operating income declined by 15%, to $1.022 billion from $1.2 billion, and Linear Networks were largely the culprit for the year-over-year dip.
Breaking down the Linear Networks revenue and operating income reveals that the company’s Star India transaction skewed the numbers.
When looking solely at domestic revenue, a 4% decline to $2.052 billion from $2.145 billion was seen. Operating income slumped to $587 million, from $682 million.
By comparison, direct-to-consumer revenue jumped by 6% to $6.18 billion, from $5.81 billion, as operating income of $346 million was seen, shifting from a $19 million operating loss in fiscal Q3 2024.
Then, there is ESPN, and domestic revenue for the sports arm of Disney inched forward to $3.93 billion, from $3.91 billion. But, domestic operating income was down to $1.01 billion, from $1.09 billion.
Meanwhile, in a positive sign that consumer spending hasn’t been wholly torpedoed by tariffs and economic uncertainty in the global markets, Parks & Experiences revenue surged by 8% overall, to $9.09 billion. On a domestic level, a 10% improvement in revenue to $6.4 billion was seen in fiscal Q3. That led to domestic operating income of $1.65 billion, rising from $1.35 billion.
