Walt Disney Co Q3 FY2025 earnings call

• Film Studios: Continued momentum with popular brands and franchises generating long-term value. - Streaming: Strengthening offering through Hulu integration and ESPN direct-to-consumer launch, with NFL and WWE partnerships enhancing content. - Experiences: Extensive global theme park expansions and cruise line growth with new ships.

Film Studios: Live-action Lilo & Stitch crossed $1 billion worldwide box office, becoming Hollywood's first film to reach this milestone in 2025 and Disney's fourth billion-dollar film in over a year. Marvel's The Fantastic Four: First Steps launched to positive reviews, with upcoming titles like Zootopia 2 and Avatar: Fire and Ash. Streaming: Announced full integration of Hulu into Disney+ for a unified app experience, launching ESPN's direct-to-consumer offering on August 21, and partnerships with NFL and WWE. Experiences: Global theme park expansions including a new World of Frozen land at Disneyland Paris, Villains and Cars-themed areas at Magic Kingdom, etc., and Disney Cruise Line growing with new ships like Disney Destiny and Disney Adventure, expanding the fleet to 8 ships.

No specific 2026 guidance detailed yet, to be discussed on the Q4 call. The NFL deal is expected to be accretive in the first year post-close. No material change to prior guidance is indicated at this time.

Economic, geopolitical, operating and industry conditions, competition, execution risks, the market for advertising, future financial performance, and legal and regulatory developments.

Q: A lot of news to digest this morning. Bob, I guess I'd love to hear a little more on the NFL relationship...

A: Ben, there are a number of aspects of these deals, and they are separate deals. The result will give ESPN more NFL games, with 28 windows compared to previous 22. It will be accretive in the first year post-close and increase revenue/operating income for ESPN.

Q: Bob, can you talk more about how you can accelerate DTC growth by fully integrating Hulu into Disney+...

A: Combining the apps improves consumer experience, lowers churn, provides efficiencies, and better packaging for advertising. The consumer gets more choice and convenience.

Q: So, I know you don't want to talk about '26 yet, but I have to ask, on the Experiences side...

A: Hugh defers talking about 2026 guidance until the Q4 call. Regarding ESPN app engagement, they aim to engage fans wherever they are.

Q: I wanted to follow up on your comments regarding theatrical franchises...

A: Robert states they focus on creating great movies, developing original IP, and mining existing IP for new opportunities.

Q: Maybe just following up on the ESPN launch...

A: The ESPN launch with the $29.99 bundle of Disney+, Hulu, and ESPN can accelerate DTC growth in terms of subscribers and engagement.

Q: I had a follow-up on the Cruise Line...

A: Robert mentions repeat visitation and expanding to new destinations, while Hugh notes consumer receptivity to new ships is strong.

Q: I wondered if you could comment on engagement trends regarding of your existing subscribers on Disney+ and Hulu...

A: Robert talks about increased engagement with integration and technological improvements, and Hugh mentions growing the business through engagement and international expansion.

Q: I just have one on domestic theme park trends...

A: Hugh states per cap growth is a mix of visitors, with no material trends to note, and they feel good about attendance and per caps.

Q: Bob, with respect to the sports offering...

A: Robert mentions potential to bundle other sports offerings and improve consumer ease of use for sports content.