Focus on Disney ETFs Post Q2 Earnings

On May 7, the Walt Disney Company DIS 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. Revenues rose 1.2% year over year to $22.08 billion but missed the consensus mark by 0.23%.

Disney's Segment Breakdown

Media and Entertainment Distribution revenues, which constitute about 44.4% of the top line, decreased 5% year over year to $9.79 billion. Operating income of the segment, surged 71.6% year over year to $781 million.

Parks, Experiences and Products revenues, constituting 38% of total revenues, increased 9.8% year over year to $8.39 billion. International revenues jumped 28.5% year over year to $1.52 billion in the reported quarter. Meanwhile, revenues from Disney’s Consumer Products rose 2.6% year over year to $913 million. Parks, Experiences and Products’ operating income was $2.28 billion, up 12.3% year over year.

At Walt Disney World Resort, the company witnessed increased guest spending attributable to higher average ticket prices and higher costs due to inflation, partially offset by lower depreciation and cost-saving initiatives. Growth at Disney Cruise Line was due to an increase in average ticket prices, partially offset by higher costs.

Subscriber Information

Disney+, as of Mar 31, 2024, had 117.6 million paid subscribers compared with 111.3 million as of Dec 31, 2023. Domestic Disney+ average monthly revenue per paid subscriber decreased from $8.15 to $8, whereas, international Disney+, excluding Disney+ Hotstar, average monthly revenue per paid subscriber increased from $5.91 to $6.66.

Disney+ Hotstar’s average monthly revenue per paid subscriber decreased from $1.28 to $0.70 due to lower advertising revenues.

ESPN+ had 24.8 million paid subscribers at the end of the fiscal second quarter compared with 25.2 million at the end of the previous quarter. The average monthly revenues per paid subscriber for ESPN+ grew 12% year over year to $6.30, driven by a rise in retail pricing and higher advertising revenues.

ETFs in Focus

Shares of the media giant fell nearly 9% since reporting second-quarter results. According to Financial Times, investor attention seemed to pivot toward concerns regarding a likely deceleration in the company's theme park division, despite its robust recovery post the lifting of pandemic restrictions.

The earnings outcome could significantly influence ETFs with investments in this major media player. Below, we have put the spotlight on ETFs that have exposure to Disney.

AdvisorShares Gerber Kawasaki ETF (GK)

AdvisorShares Gerber Kawasaki ETF has an exposure of 5.03% in DIS. The fund has gained 5.08% over the past three months but has fallen 6.06% over the past month.

Vanguard Communication Services ETF (VOX)

Vanguard Communication Services ETF has an exposure of 4.79% in DIS. The fund has gained 3.24% over the past three months but is down 3.88% over the past month.

Fidelity MSCI Communication Services Index ETF (FCOM)

Fidelity MSCI Communication Services Index ETF has an exposure of 4.48% in DIS. The fund has gained 3.24% over the past three months but has lost 3.88% over the past month.

ALPS Global Travel Beneficiaries ETF (JRNY)

ALPS Global Travel Beneficiaries ETF has an exposure of 4.41% in 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)

iShares Global Comm Services ETF has an exposure of 4.09% in DIS. The fund has gained 5.38% over the past three months but lost 2.98% over the past month.

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The Walt Disney Company (DIS) : Free Stock Analysis Report

AdvisorShares Gerber Kawasaki ETF (GK): ETF Research Reports

Vanguard Communication Services ETF (VOX): ETF Research Reports

Fidelity MSCI Communication Services Index ETF (FCOM): ETF Research Reports

iShares Global Comm Services ETF (IXP): ETF Research Reports

ALPS Global Travel Beneficiaries ETF (JRNY): ETF Research Reports

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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