Disney Taps Formula 1's Global Fanbase To Supercharge Brand Reach Among Young Viewers

Formula 1 and Walt Disney Co DIS announced on Tuesday a new collaboration with Mickey & Friends that will begin in 2026.

Formula 1 chief commercial officer Emily Prazer said the arrangement fits perfectly with its strategy to step outside the world of sport and into a broader consumer market. In return, it introduced Disney to its 820 million fans worldwide.

In recent years, Formula 1 has seen a massive surge in growth with younger fans. Data shows that over four million children aged 8-12 actively follow the sport across the EU and US, while 54% of followers on TikTok and 40% on Instagram are now under 25 years old. 

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Walt Disney stock surged over 9% in the last 12 months.

Walt Disney reported fiscal second-quarter revenue growth of 7% to $23.62 billion, beating the analyst consensus of $23.14 billion driven by its Entertainment and Experiences businesses. Adjusted EPS of $1.45 beat the analyst consensus of $1.20.

Entertainment revenue, including traditional TV networks, direct-to-consumer streaming and films, increased by 9% to $10.68 billion.

Sports revenue (mostly comprised of ESPN) rose 5% to $4.53 billion. Experiences revenue (including Disney’s theme parks and consumer products) climbed 6% to $8.89 billion.

For fiscal 2025, Disney projected an adjusted EPS of $5.75, an increase of 16% versus a $5.44 analyst estimate.

The company reiterated double-digit operating income growth for the Entertainment segment in fiscal 2025. Disney maintained its Experience segment to see operating income growth of 6%- 8% in fiscal 2025. The company expects its Sports segment to grow 13% in fiscal 2025.

CEO Bob Iger has said he remains optimistic about the company’s direction and outlook for the remainder of the fiscal year.

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