The field workplace tidal wave of “Moana 2” and higher outcomes from streaming lifted Walt Disney Co.’s outcomes for its fiscal first quarter, at the same time as its dependable theme park sector was hampered by twin hurricanes in Florida.
The Burbank media and leisure large reported $24.7 billion in income for the three-month interval that ended Dec. 28, a 5% improve in contrast with the identical quarter a 12 months earlier. Earnings earlier than taxes totaled $3.7 billion, up 27% 12 months over 12 months. Earnings per share had been $1.40 for the quarter, up from $1.04.
For the file:
9:00 p.m. Feb. 5, 2025An earlier model of this text stated Disney’s income for the three-month interval that ended Dec. 28 was 5% increased in contrast with the earlier quarter. It was 5% increased than within the comparable quarter a 12 months earlier.
Disney topped Wall Avenue’s projections for earnings and income.
The quarterly outcomes come after a roughly two-year turnaround interval for Disney, which has made substantial efforts to revitalize its companies, significantly its studios and streaming providers, after dropping its means below former Chief Government Bob Chapek.
“Total, we’re very inspired by our outcomes this quarter,” Chief Government Bob Iger stated throughout a Wednesday name with analysts. “Clearly, one of many nice highlights was the efficiency of our movie studios. We noticed progress in streaming profitability, historic rankings on ESPN and the sturdy and enduring enchantment of Disney’s experiences enterprise.”
Traders weren’t as enthused, as shares of Disney closed Wednesday at $110.56, down $2.74, or 2.4%..
Analysis agency CFRA maintained a “purchase” score for Disney inventory, with senior fairness analyst Kenneth Leon writing, “In 2025, we’re assured Disney will understand improved efficiency.”
Disney’s leisure phase, which incorporates its studios and Disney+ and Hulu streaming companies, had , notching $10.9 billion in income, a rise of 9% in comparison with the identical interval a 12 months earlier.
Working earnings for the division practically doubled to $1.7 billion, buoyed largely by the the sequel to the favored 2016 movie about an adventurous teenager, starring the voice skills of Auli’i Cravalho and Dwayne Johnson.
Income for content material gross sales and licensing, which incorporates theatrical movie distribution, rose 34% to $2.2 billion, in comparison with $1.6 billion the earlier 12 months. The comparable interval in 2023 included the animated movie “Want” and the superhero film “The Marvels,” which disillusioned on the field workplace.
The corporate additionally noticed continued good points in its streaming enterprise.
Income for Disney’s leisure streaming enterprise, which incorporates Disney+ and Hulu, was $6.1 billion, a rise of 9%. The 2 providers had a complete of 178 million subscribers within the first quarter, a rise of about 900,000 in comparison with earlier quarter. Nonetheless, Disney+-only subscriptions had been down 1% to 124.6 million, reflecting a value improve that led to churn.
But it surely wasn’t all excellent news for Disney’s leisure division. The corporate’s linear networks continued to battle, reporting income of $2.6 billion, a 7% lower in comparison with the earlier 12 months’s quarter, and working earnings of $1.1 billion, down 11%. Disney stated the declines had been due to increased programming prices and a lower in affiliate income resulting from cord-cutting.
Throughout Wednesday’s analyst name, Iger disputed the concept that the corporate’s linear networks had been weighing on the corporate, as an alternative calling them “an asset.” He stated he wouldn’t rule out the potential for reconfiguring a number of the smaller networks by way of how they’re dropped at market or “possibly even possession,” however that the corporate felt good about its scenario.
“We really are at a degree the place the linear networks in our firm are usually not a burden in any respect,” he stated. “We’re programming them, and we’re funding them at ranges that really give us the flexibility to reinforce our total tv enterprise, that clearly consists of and leads into streaming, which, let’s face it, is absolutely the way forward for the tv enterprise.”
Disney’s experiences division, which incorporates , cruise line and specialty journey experiences just like the Aulani resort in Hawaii, reported income of $9.4 billion, up 3% in comparison with final 12 months. The phase’s working earnings was basically flat for the quarter at $3.1 billion. Domestically, Disney’s parks and experiences reported $2 billion in working earnings, a lower of 5% in comparison with the earlier 12 months.
Disney attributed the softer outcomes — significantly in its home parks and cruises — to beforehand introduced prices to , in addition to inflation and Hurricanes Helene and Milton. The corporate closed Walt Disney World Resort for a day and canceled a cruise itinerary resulting from Hurricane Milton.
The corporate’s sports activities enterprise, which incorporates ESPN, reported income of $4.9 billion, basically flat in comparison with the earlier 12 months. The phase’s working earnings was $247 million, in comparison with a lack of $103 million a 12 months in the past. Disney additionally touted its addition of an ESPN tile to the Disney+ house display screen, in addition to new, stay sports activities reveals unique to Disney+ that may debut later this 12 months.
Disney attributed the advance in profitability to its Star India enterprise, noting there have been no important cricket occasions within the fiscal first quarter of 2025, versus final 12 months.
The corporate additionally accomplished its India three way partnership with Reliance Industries Restricted within the first quarter, combining its Star-branded leisure and sports activities TV channels and the Disney+ Hotstar service in India with a few of Reliance’s media belongings. Disney now owns 37% of the three way partnership. The corporate recorded a $33-million loss within the first quarter resulting from buy accounting of the brand new enterprise.
The corporate expects to jot down off about $50 million within the fiscal second quarter as a result of dissolution of the deliberate Venu Sports activities streaming service. Disney, together with companions Fox Sports activities and Warner Bros. Discovery, after a lawsuit blocking its debut was settled.
