ETFs
Focus on Disney ETF results after the second quarter – May 13, 2024
On May 7, the Walt Disney Company (SAY – Free report) reported second-quarter fiscal 2024 adjusted earnings of $1.21 per share, which beat the Zacks Consensus Estimate by 8.04% and increased 30.1% year-over-year on the other. Revenue rose 1.2% year over year to $22.08 billion, but missed the consensus mark by 0.23%.
Disney Segment Breakdown
Media and entertainment distribution revenue, which constitutes about 44.4% of revenue, declined 5% year over year to $9.79 billion. The segment’s operating profit jumped 71.6% year over year to $781 million.
Revenue from parks, experiences and products, which represents 38% of total revenue, increased 9.8% year over year to $8.39 billion. International revenue jumped 28.5% year-over-year to $1.52 billion in the reported quarter. Meanwhile, Disney’s consumer product revenue increased 2.6% year over year to $913 million. Parks, Experiences and Products operating profit was $2.28 billion, up 12.3% year over year.
At Walt Disney World Resort, the company saw an increase in guest spending attributable to higher average ticket prices and higher costs due to inflation, partially offset by lower depreciation and cost-effectiveness initiatives. cost reduction. Disney Cruise Line’s growth was driven by an increase in average ticket prices, partially offset by increased costs.
Subscriber Information
Disney+, as of March 31, 2024, had 117.6 million paying subscribers, compared to 111.3 million as of December 31, 2023. Domestic Disney+’s average monthly revenue per paying subscriber decreased from $8.15 to $8, while Disney+ international, excluding Disney+ Hotstar, declined on average monthly. revenue per paying subscriber increased from $5.91 to $6.66.
Disney+ Hotstar’s average monthly revenue per paying subscriber fell from $1.28 to $0.70 due to lower advertising revenue.
ESPN+ had 24.8 million paying subscribers at the end of the fiscal second quarter, up from 25.2 million at the end of the previous quarter. Average monthly revenue per paid subscriber for ESPN+ increased 12% year over year to $6.30, driven by higher retail prices and higher advertising revenue.
Focus on ETFs
Shares of the media giant have fallen nearly 9% since reporting second-quarter results. According to the Financial TimesInvestor attention appeared to turn to concerns about a likely deceleration in the company’s theme parks division, despite its strong recovery after pandemic restrictions were lifted.
The earnings outcome could significantly influence ETFs investing in this major media player. Below, we’ve highlighted ETFs with exposure to Disney.
AdvisorShares Gerber Kawasaki ETF (G.K. – Free report)
AdvisorShares Gerber Kawasaki ETF has 5.03% exposure to DIS. The fund has gained 5.08% over the past three months but has fallen 6.06% over the past month.
Vanguard Communications Services ETF (VOX – Free report)
Vanguard Communication Services ETF has 4.79% exposure to DIS. The fund has gained 3.24% over the past three months but is down 3.88% over the past month.
Fidelity MSCI Communications Services ETF (FCOM – Free report)
The Fidelity MSCI Communication Services Index ETF has 4.48% exposure to DIS. The fund has gained 3.24% over the past three months but lost 3.88% over the past month.
ETF ALPS Global Travel Beneficiaries (JRNY – Free report)
ALPS Global Travel Beneficiaries ETF has 4.41% exposure to DIS. The fund has gained 1.87% over the past three months but has fallen 5.31% over the past month.
iShares Global Comm Services ETF (IXP – Free report)
iShares Global Comm Services ETF has 4.09% exposure to DIS. The fund gained 5.38% over the past three months but lost 2.98% over the past month.
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