Disney exceeded expectations in the first quarter, largely driven by the success of 'Moana 2.' Originally planned as a series for the streaming service, the animated film surpassed predictions with a record-breaking five-day opening during Thanksgiving.
The Walt Disney Co. reported earnings of $2.55 billion, or $1.40 per share, for the period ending Dec. 28, up from $1.91 billion, or $1.04 per share, in the same period last year. Adjusted earnings of $1.76 per share outperformed Wall Street estimates by 32 cents.
Revenue increased by 5% to $24.69 billion, slightly exceeding analyst projections. The Entertainment segment saw a 9% revenue growth, with a 34% surge in content sales/licensing and Other, attributed to the strong performance of 'Moana 2.'
Disney's direct-to-consumer business, including Disney+ and Hulu, reported a quarterly operating income of $293 million, a significant improvement from the $138 million loss a year ago. Revenue for this segment rose by 9% to $6.07 billion.
While Disney+ experienced a 1% increase in paid subscribers domestically, international subscriptions dropped by 2%, resulting in a 1% decline in total paid subscribers for the quarter. The company had 125 million Disney+ subscribers and a total of 178 million Disney+ and Hulu subscriptions.
Despite the slight decline in Disney+ subscribers, CEO Bob Iger expressed satisfaction with the growth, especially after raising prices. Analysts noted that Disney's cost-cutting measures and strong performance in parks and studios offset challenges in streaming.
Looking ahead, Disney anticipates a modest decline in Disney+ subscribers for the second quarter but expects high-single digit adjusted earnings per share growth for fiscal 2025. The Experiences division, which includes theme parks and cruise lines, reported flat operating income domestically but a 28% increase internationally.
Shares of Disney rose by about 1% in morning trading following the earnings report.
