Q2 Media & Entertainment Distribution Results slide image

Q2 Media & Entertainment Distribution Results

Q2 Media & Entertainment Distribution Results (In Billions) Revenues $2.2 Linear Networks The decline in operating income vs. prior year was primarily driven by decreases of ~$800 million at our domestic linear networks and ~$160 million at our international linear networks. Domestic results decreased at both Cable and Broadcasting. • Lower Cable results were largely due to higher sports programming and production costs, which were driven by the timing of costs for the College Football Playoffs and the NFL, in addition to NBA contractual rate increases and higher sports production costs. $7.1 Linear Networks $6.6 $5.5 $4.9 Direct-to-Consumer CSLO $1.9 Elimination of Intrasegment Revenues (1) ($0.3) ($0.3) • Q2'22 Q2'23 Linear Networks Direct-to-Consumer CSLO Operating Income (Loss) $2.8 $1.8 $0.0 ($0.1) ($0.9) Q2'22 ($0.7) Q2'23 Lower Broadcasting results reflected decreases in advertising revenue across the ABC Network and our owned television stations. International Channels operating income decreased due to lower advertising revenue, partially offset by a decrease in programming costs. Direct-to-Consumer Revenues increased by 12% and operating loss decreased by ~$200 million vs. the prior year due to improved results at Disney+ and ESPN+, partially offset by lower operating income at Hulu. Content Sales / Licensing and Other (CSLO) Operating results decreased by $66 million vs. the prior year due to lower TV/SVOD distribution results, partially offset by an improvement at theatrical distribution. (1) Reflects fees received by the Linear Networks from other DMED businesses for the right to air our Linear Networks and related services ©Disney Second Fiscal Quarter Ended April 1, 2023 5
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