Disney’s first-quarter revenue rose 5% to $26.0bn (consensus: 4%). All divisions were in growth territory, with the Entertainment segment growing at the fastest pace, up 7%.
Segment operating profit fell by 9% to $4.6bn, slightly better than market forecasts. Growth in Experiences was offset by double-digit percentage declines in Sports and Entertainment due to higher production and marketing costs.
Free cash flow fell from an inflow of $0.7bn to an outflow of $2.3bn due to higher tax payments and increased investments in its parks and resorts. Net debt rose by $4.6bn to $41.0bn since year-end.
Second-quarter segment operating profit is expected to be in line with the prior year’s $4.4bn. Full-year guidance remains unchanged, with underlying earnings per share expected to grow at a double-digit rate.
The shares fell 2.1% in pre-market trading.
Our view
HL view to follow.
Disney key facts
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This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
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