Disney reported a 30% year-over-year growth in adjusted earnings per share, raising its full-year adjusted EPS growth target to 25% in its recent Q2 2024 earnings call. This performance was largely driven by the Entertainment and Experiences segments, with Disney’s streaming business reaching profitability in the Entertainment division. Here’s a closer look at how each business segment performed and the challenges Disney faces moving forward. Entertainment segment Disney’s Entertainment segment saw its operating income surge by over 70% year-over-year, primarily due to strong growth in its direct-to-consumer (DTC) business. Revenue in this segment grew sequentially by 2% and annually by 13%, reaching US$47 million in operating income. This success was attributed to significant expense savings and a 6.3 million increase in Disney+ core subscribers. Disney+ core ARPU (average revenue per user) also grew by 6% sequentially, thanks to price increases and improved international ARPU. Despite these positive trends, Disney is bracing for a loss in the Entertainment DTC business in the third quarter  ...