Disney reported better-than-expected Q1 earnings, despite a slight decline in Disney+ subscribers. The streaming platform saw a 1% drop in total subscriptions, with international markets falling 2%, while domestic numbers rose 1%. This decline follows last year’s price increases, which helped raise average monthly revenue per subscriber by 4% to $7.99.
Total Disney+ subscribers now stand at 124.6 million, down from 125.3 million in the previous quarter, while Hulu subscriptions increased 3% to 53.6 million. Despite these shifts, Disney’s streaming division remained profitable. The company previously anticipated a modest decline in subscribers and expects a similar trend in Q2.
For the quarter, Disney reported $1.76 in adjusted earnings per share, surpassing analysts’ expectations of $1.45. Revenue also beat projections, reaching $24.69 billion, a 4.8% increase from last year’s $23.55 billion. Net income jumped nearly 23% to $2.64 billion from $2.15 billion.
The entertainment division saw a 9% revenue increase, reaching $10.87 billion, with operating income rising 95% to $1.7 billion. Strong box-office performance helped drive this growth, with major hits like Moana 2, Deadpool & Wolverine, and Inside Out 2 boosting content sales.
Disney’s experiences division, including theme parks, cruises, and resorts, grew 3% to $9.42 billion. Domestic theme parks accounted for $6.43 billion, marking a 2% increase. However, hurricanes and attendance declines impacted operating income, which dropped 5% to $1.98 billion. Disney expects 6-8% operating income growth in this segment for fiscal 2025, continuing its $60 billion investment in parks.
The sports division, led by ESPN, reported 8% revenue growth to $4.81 billion, with operating income rising 15% to $228 million. The company anticipates a 13% increase in sports segment operating income for 2025, despite temporary impacts from shifting College Football Playoff and NFL game schedules.
Disney also reaffirmed its commitment to expanding streaming, with plans to launch a direct-to-consumer ESPN platform later this year. The company abandoned the Venu sports streaming joint venture, citing redundancy due to the rise of skinny bundles.
Despite challenges in streaming and theme parks, Disney remains confident in its long-term strategy, balancing traditional TV, streaming, and live experiences to drive future growth.
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