CLAIM #21457 · DIS (DIS) · 2025Q2 earnings call · May 7, 2025 · due Sep 30, 2026
“with a business that is going to have the growth that we have expectations for in the streaming business, there will clearly be leverage that just comes out of the revenue growth itself.”
Hugh Johnston · CFO
How to check this claim
Look at: Direct-to-Consumer (streaming) segment operating margin, as reported in Disney's segment disclosures
It came true if: DTC operating margin higher in a given quarter than the year-ago quarter's reported margin
Where: Disney quarterly earnings release / 10-Q segment results (Direct-to-Consumer)
In context
“and California, which obviously is a vote of confidence in those locations. But in addition, those will be highly accretive from a job perspective as well. And we're also investing to expand in every other location that we operate. So obviously, a bullish belief in the business itself with Abu Dhabi, as I said, and with the addition of the cruise ships, we're making ourselves very accessible to hundreds of millions of more people than we were in the past. And so, we're going to focus on this right now and the other investments that we're making. And as I said, I'm not ruling out the possibility of another location, but it's not exactly something that's a priority right now for us. Hugh Johnston: Yeah. And hey, Kannan, I'll handle the streaming question. While your point is exactly right, with a business that is going to have the growth that we have expectations for in the streaming business, there will clearly be leverage that just comes out of the revenue growth itself. But in addition to that, we absolutely have opportunities to reduce costs. So the answer is both, we can certainly do it on the G&A side and especially as we start to add more to the product, both in terms of the technology side of the product where we will be investing and in terms of the content that's delivered, whether it's bringing ESPN on and the additional content that we've been bringing in through bundling, we certainly expect to get operating leverage out of marketing over time. I wouldn't say that initially, especially as we launch ESPN. But over time, we would expect to get leverage out of the marketing line as well. So put those two together, yeah, I do expect some flow from top to bottom. We will use some of that to invest back in the business, perhaps in some international”
Verify independently
SEC filings for DIS ↗ · Claim quote is verbatim from the 2025Q2 earnings call.