Disney First-quarter earnings were released on Wednesday, which beat both the top and the bottom line, but revealed the beginning of Disney+’s expected streaming subscriber losses.
Although Disney+ subscribers, the company’s flagship service, fell by 1%, the company’s streaming business reported another quarter of profitability. Even though the platform’s domestic subscriptions increased by about 1%, international numbers fell by about 2%.
Disney warns during its November 4th Quarter Report It expects a “moderate decline” in subscriptions over December. Disney told investors on Wednesday that subscribers are expected to decline again in the second quarter.
Disney+ subscriptions totaled 124.6 million, compared with 125.3 million at the end of the fourth quarter. During this period, Hulu’s total subscriptions grew 3% to 53.6 million.
Streaming growth slows down Service prices rose last year. Disney+’s average monthly revenue increased by about 4% to $7.99 due to these price increases, the company said.
This is Disney for As of December 28 According to LSEG, compared to Wall Street expectations
- Earnings per share: $1.76 adjusted with $1.45 expected
- income: $24.69 billion and $24.62 billion
Disney’s net income increased from $2.15 billion or $1.04 per share to $2.64 billion, or $1.40 per share, at $1.04 per share. The same quarter last year. Adjusted for one-time items, including restructuring expenses and impairment related to intangible Hulu assets, Disney reported adjusted EPS of $1.76.
Revenue rose 4.8% to $24.69 billion, compared with an annual maturity of $23.55 billion.
The company’s entertainment, sports and experience segments are fully revenue revenue.
Revenues in its entertainment division rose 9% to $10.87 billion. The unit’s operating income includes its direct-to-consumer, linear and content sales businesses, which rose 95% to $1.7 billion in the quarter due to higher content sales and licensing. Linearly continues to delay overall results.
Still, CEO Bob Iger remained positive on Wednesday’s call with investors echo Similar comments were made on November’s earnings call.
“They are not burdens at all. They are actually an asset,” Eiger said Wednesday.
Iger said he would not rule out future TV network changes, but he said he would not be now.
“We are actually happy with our hands and the way we manage our linear and streaming businesses in full,” Eiger said.
Disney’s box office success helped cancel the company’s results this quarter.
On Thanksgiving weekend, the debut of “Moana 2” helped push the box office to the New heights. The animation sequel continues Strong At the new year’s box office, it’s over $1 billion during the weekend of Martin Luther King Jr. Jr. The company noted Wednesday that its content sales/licensing and other operating income had increased from “Moana 2”.
Overall, Disney leading Box office in 2024, with the help of other films like Marvel’s “Deadpool & Wolverine” and Pixar’s “Inside Out 2”
The company said it expects revenue from the entertainment division to grow by double digits in fiscal 2025, with revenue directly to consumers increasing by about $875 million.
Park Active
Revenue rose 3% in the quarter to $9.42 billion in experience businesses, including parks, parades and resorts, and consumer products.
Domestic theme park revenue accounts for 68% of the total sector, or $6.43 billion. Although that revenue was up 2% from the same quarter last year, the combination of Hurricane Milton and Helen, as well as the decline in attendance and investments for the Disney Cruise fleet, both bear domestic operating income.
The experience sector’s domestic theme park operating revenue fell 5% to $1.98 billion in the quarter.
Disney expects operating income growth in its experience sector to be between 6% and 8% in fiscal 2025.
Theme parks in the United States have recently experienced a slowdown in traffic after excitement after attending.
Disney’s Chief Financial Officer Hugh Johnston on Wednesday at CNBC’sSquawk Box“The experience segment performed better than expected.
“In fact, consumers are a little stronger than we expected,” Johnston said Wednesday. “I think what we are seeing is that consumers take it very seriously and you bring value to them and they are willing to pay for it.”
Disney’s Parks change Even if the company raises the price of its destination, record revenue and profits are the same. The company is on track for 10 years, $60 billion invest In the segment.
Sports scene
In sports, Disney’s ESPN reported revenues rose 8% year-on-year to $4.81 billion, and operating income increased 15% from the previous year to $228 million.
The company expects operating income in its overall sports sector, including ESPN and Star India, to grow 13% in fiscal 2025.
Disney said Wednesday that its sports division operations in the second quarter will be “adversely affected”, with approximately $100 million related to the transfer of three college football playoff games in the second quarter.
This fall, Disney’s network broadcasts the entire Southeast Conference University football schedule.
Disney executives point out Comment Release Wednesday. The recent college football season has helped lift Disney’s advertising revenue in the past seasons.
Meanwhile, Disney also said that guidance on unit operating income includes a blow of about $50 million from the exit of the joint venture with Venu Sports. Disney and its joint venture partners, Warner Bros. Discover and foxcanceled their efforts to move forward with Venu, which would have been a streaming app that included all live sports from its parent company.
The strategy changes occurred after legal headaches stopped launches last fall.
this rise Slim bundles (the slim products of traditional pay TV publishers focus on sports and news networks) are also a contributor. Iger said in a call with investors on Wednesday that the Seto “basically seems redundant to us”, next to the thin bundle of products.
Due to work suspension, Fox announced Tuesday After years of direct streaming game distance, it will move forward with its own streaming service. Fox executives also pointed out that the thin bundle will benefit from its online portfolio.
Disney has been researching ways from merging apps to Disney+ to exploring ESPN, like Venu, etc.
The company also plans to launch its own direct-to-consumer streaming app for ESPN this fall, company executives said Wednesday.
“We obviously tend toward what is now called a ‘flagship’ development, which is essentially ESPN has multiple elements that have multiple meanings,” Eagle said.
Disclosure: Comcast, who owns CNBC parents, is co-owner of Hulu.
