Disney Q1 Earnings Beat Expectations, Revenue Up 5%

The Walt Disney Company (NYSE: DIS) announced its first fiscal quarter earnings for the period ending December 28, 2024, reporting a 5% revenue increase to $24.7 billion, up from $23.5 billion in the same quarter last year.

Net income saw a significant jump, increasing 27% to $3.7 billion.

Diluted earnings per share (EPS) also showed strong growth, rising 35% to $1.40.  

Key highlights of the quarter include:

• Entertainment Segment: Operating income nearly doubled, driven by improved performance in Direct-to-Consumer (DTC) streaming and content licensing, notably the success of Moana 2. While DTC advertising revenue declined slightly overall, excluding Disney+ Hotstar in India, it saw a 16% increase. Disney+ subscriptions dipped slightly to 125 million, while total Disney+ and Hulu subscriptions combined reached 178 million.
• Sports Segment: Operating income increased, with domestic ESPN advertising revenue up 15%.  
• Experiences Segment: Operating income remained comparable to the prior year, despite adverse impacts from hurricanes and pre-opening expenses related to the Disney Treasure cruise ship. International parks saw strong growth, offsetting a slight decline in domestic parks.  

Looking ahead, Disney anticipates high-single digit adjusted EPS growth for fiscal year 2025, with significant operating income improvements expected in both the Entertainment and Sports segments.

The company’s CEO, Robert Iger, expressed confidence in Disney’s strategic direction, highlighting the strong box office performance, improved DTC profitability, and continued investment in its Experiences segment.

The company also noted the deconsolidation of Star India, which will impact operating income comparisons.

Disney+ subscriber numbers are expected to modestly decline in the second quarter.

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