Disney Beats Expectations in Q1, Despite Streaming Churn and Park Setbacks
Earnings Highlights
* Profitability in streaming segment: $293 million (up from a loss of $138 million last year)
* Revenue: $24.70 billion (exceeded expectations of $24.57 billion)
* Adjusted EPS: $1.76 (above analysts' forecast of $1.42)
Streaming Business
* Disney+ subscriber loss of 700,000, primarily due to price hikes
* Further decline in Disney+ subscribers expected in Q2
* Company expects streaming profits of $875 million in fiscal 2025
* Direct-to-consumer (DTC) streaming revenue increased by 9.5%
Parks Division
* Operating income declined by 5% due to hurricanes and cruise ship investments
* Disney Treasure cruise launch showcased a strong start
* Growth in operating income expected between 6% and 8% for full-year 2025
Other Business Segments
* Disney Entertainment experienced a 95% increase in operating income
* Box office hits included "Mufasa" and "Moana 2"
* Hulu+ Live TV to merge with Fubo TV to enhance user experience
CEO Succession and Industry Changes
* Bob Iger expressed satisfaction with subscriber growth across streaming services
* Company plans to announce a new CEO in early 2026
* Venu Sports joint venture abandoned due to regulatory concerns