Disney Q1 Earnings Preview: Streaming Focus Amid Parks Challenges
Key Metrics
* Total revenue: Consensus estimates $24.57 billion (vs. $22.08 billion in Q1 2024)
* Adjusted earnings per share: $1.42 (vs. $1.21 in Q1 2024)
* Entertainment revenue: $11 billion (vs. $9.98 billion in Q1 2024)
* Sports revenue: $4.70 billion (vs. $4.84 billion in Q1 2024)
* Experiences revenue: $9.30 billion (vs. $9.13 billion in Q1 2024)
Parks and Resorts
* Uncertainty due to hurricane impact ($130 million hit, $90 million from cruise line pre-launches)
* Operating income improvement expected for the full year (6-8% growth in 2025)
Streaming
* Loss of 1.41 million Disney+ subscribers (vs. 600,000 lost in Q1 2024)
* Focus on profitability, with $875 million targeted for fiscal 2025
* Recent price hikes for subscription plans
Mergers and Acquisitions
* Announcement of Hulu+ Live TV merger with Fubo TV
* Demise of Venu Sports streaming service due to regulatory concerns
Linear TV
* Expected decline in revenue year-over-year
* Streaming gains seen as a "natural hedge" against linear network struggles
Succession
* Search for a successor to CEO Bob Iger ongoing
* New chief expected to be announced in early 2026