Disney Q1 Earnings Preview: Streaming Momentum and Park Uncertainty
Key Metrics:
* Total Revenue: $24.57 billion (est.) vs. $22.08 billion Q1 2024
* Adjusted Earnings per Share: $1.42 (est.) vs. $1.21 Q1 2024
* Entertainment Revenue: $11 billion (est.) vs. $9.98 billion Q1 2024
* Sports Revenue: $4.70 billion (est.) vs. $4.84 billion Q1 2024
* Experiences Revenue: $9.30 billion (est.) vs. $9.13 billion Q1 2024
* Disney+ Subscriber Net Additions: Loss of 1.41 million (est.) vs. loss of 600,000 Q1 2024
Streaming Focus:
* Direct-to-consumer (DTC) streaming business to post profits of $875 million in fiscal 2025 (est.).
* Streaming profitability is critical as consumers shift from pay-TV to DTC services.
* Disney has raised subscription prices to boost margins on DTC offerings amidst declining linear television.
Hulu+ Live TV Merger:
* Disney to merge Hulu+ Live TV with Fubo TV, creating a majority-Disney-owned entity.
* Deal expected to close in the next 12-18 months.
Venu Sports Demise:
* Sports streaming service backed by Disney, Warner Bros. Discovery, and Fox abandoned due to regulatory concerns.
Other Highlights:
* Parks business faces uncertainty due to hurricane impacts.
* Linear network revenue expected to decline year over year.
* Disney searching for a successor to CEO Bob Iger.