Disney: An Offensive Posture

From “They’re Actually An Asset” (February 2025): “That’s water under the bridge now, and it’s better late than never: the impending launch of ESPN flagship is indicative of a management team that is moving from a defensive posture on legacy ESPN distribution to an offensive one. As opposed to being inextricably tied to the big bundle, they are open to expanded distribution options: sports led ‘skinny’ bundles, ESPN flagship standalone, and their single app U.S. DTC bundle (all inside of Disney+). This is a significant change that will influence the long-term direction of ESPN and Disney.”

For a company that spent the better part of the past 5+ years incurring financial pain to rectify strategic missteps in its Video businesses, Disney’s 1H FY25 financials are further evidence that we’re past the turning point.

Along with ongoing strength in Experiences, management now expects FY25e EPS of ~$5.8 per share – more than 50% higher than FY23. As shown below, I expect this strong growth to continue in the years ahead. (In the Experiences segment, they also revealed plans for Disneyland Abu Dhabi.)