‘Moana 2’ and Streaming Power Disney to Wall Street Beat in Latest Quarter

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In its most recent quarter, The Walt Disney Company surpassed Wall Street predictions, primarily driven by the success of its entertainment sector and streaming service.

In the first quarter of their financial year, which concluded on December 28, Disney recorded revenues amounting to approximately $24.7 billion – a 5% increase compared to the same period last year. The operating income from their business segments reached $5.1 billion, marking a 31% rise, and earnings per share were at $1.76, representing a 44% growth.

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During the first quarter of its fiscal year ending on December 28, Disney generated $24.7 billion in revenue, which was a 5% increase compared to the previous year. The operating income for their business segments totaled $5.1 billion, showing a 31% growth, and earnings per share were at $1.76, demonstrating a 44% rise.

In the realm of entertainment, Moana 2 dominated its sector, experiencing a 9% increase in annual revenues compared to last year and reporting an operating income of approximately $1.7 billion. Meanwhile, the direct-to-consumer segment persistently soared, producing an operating income of $293 million.

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In entertainment, Moana 2 led its division with a 9% revenue boost year over year and a $1.7 billion increase in operating income. Additionally, the direct-to-consumer segment maintained its upward trend, earning an operating income of $293 million.

Previously, Disney had led Wall Street to expect a decrease in subscribers, and this trend was observed at Disney+, which lost approximately 700,000 subscribers, bringing its total to 124.6 million. However, Hulu saw an increase of 1.6 million subscribers, reaching 53.6 million. This growth is significant because Hulu has become more interconnected with Disney+, and the overall subscriber numbers surpassed what analysts had predicted, especially the growth rate at Hulu.

In addition, Disney’s Experiences sector was affected by Hurricanes Milton and Helene, along with expenses related to the debut of the Disney Treasure cruise ship. The hurricanes resulted in a financial loss of approximately $120 million, with Milton causing Disney World to temporarily close for a day.

The division’s revenue for the year totaled approximately $9.4 billion, marking a 3% increase compared to the previous year. However, the operating income remained unchanged at $3.1 billion from the same period last year. This indicates that if not for the exceptional matters, the division might have enjoyed stronger profit margins.

As a gamer, I’d rephrase that as: “Last year, ESPN brought in about $4.4 billion from its home market, which was a 9% increase compared to the previous year. However, our domestic earnings dropped by 9%, mainly due to expenses linked with the College Football Playoff.

Disney additionally disclosed a $50 million expense due to their choice to close down the streaming platform, Venus.

Disney CEO Bob Iger stated that our first-quarter results showcase Disney’s robust creative and financial might, as we have been pushing forward with the strategic plans established over the previous two years. In the fiscal quarter 1, our studios delivered exceptional box office success, holding the number one, two, and three spots for the year 2024; we also enhanced the profitability of our streaming Entertainment businesses directly to consumers; we made a significant move in ESPN’s digital strategy by introducing an ESPN tab on Disney+, and our Experiences segment maintained its allure as we proceed with strategic investments worldwide. In summary, this quarter marked a strong beginning for the fiscal year, and we remain optimistic about our growth strategy.

The firm provided more details about Q2 expectations, such as a continued, slight drop in Disney+ subscribers relative to Q1, and increased expenses for ESPN due to college sports and an additional NFL game.

More to come.

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2025-02-05 14:55