Disney beats expectations with Moana 2 and streaming power
Make us a preferred source
Make us a preferred source on Google
The news: Walt Disney exceeded earnings expectations for the first fiscal quarter, driven by the success of Moana 2 and higher streaming profits.
The numbers: Adjusted earnings per share rose 44% to USD1.76, surpassing a consensus estimate from analysts polled by LSEG of USD1.45 per share. Revenue increased 5% to USD24.7 billion, and operating income climbed 31% to USD5.1 billion.
Moana 2 grossed over USD1 billion globally.
Streaming, including Disney+, Hulu and ESPN+, posted a USD293 million profit, up from a USD138 million loss a year earlier. That was about USD100 million ahead of analysts expectations, even as Disney+ subscribers fell 1% to 124.6 million following a price hike.
“It’s going to be the portal into all things Disney,” finance chief Hugh Johnston said of Disney+ in a Wednesday CNBC interview. " The streaming business is doing extremely well. The expectation is that we will continue to grow subscribers," he said at a separate interview with Bloomberg.
“We feel like the streaming business will be one of the big drivers for our company going forward.”
Theme park profits were flat at USD3.1 billion, affected by hurricanes and cruise ship costs, while traditional TV profits fell 11% to USD1.1 billion.
Disney said it expects high single-digit adjusted earnings growth in 2025 and an USD875 million increase in streaming operating income.
Shares gained as much as 4.66% in early trading, before paring back gains.
The context: The results mark Disney’s third consecutive profitable quarter in streaming after years of heavy investment in the segment.
In January, Disney, Fox and Warner called off a planned sports streaming joint venture called Venu Sports, for which Disney said the company would incur a USD50 million cost in the current quarter.
CEO Bob Iger called the quarter a "strong start" to the fiscal year.
What they said: "Overall, this quarter proved to be a strong start to the fiscal year, and we remain confident in our strategy for continued growth,” Iger said.
The sources: Disney statement, Disney 1Q release, Bloomberg, Reuters, The Wall Street Journal
