Disney Earnings Beat Expectations, Despite Disney+ Subscriber Decline
Earnings Highlights
Disney (DIS) reported impressive first-quarter earnings, exceeding analyst expectations.
* Revenue: $24.70 billion, +5% YoY
* Adjusted Earnings Per Share (EPS): $1.76, +44% YoY
* Streaming Segment: Profit of $293 million vs. $138 million loss in Q1 2022
Streaming Performance
* Disney+ subscribers declined by 700,000 in the quarter, but the loss was lower than analyst expectations.
* The decline was attributed to user churn caused by recent price increases.
* Despite the subscriber loss, the streaming segment swung to profitability for the third consecutive quarter.
Parks and Experiences
* Operating income in the domestic parks and experiences segment declined by 5% YoY.
* This was due to setbacks faced during two hurricanes and greater cruise ship investments.
Other Highlights
* The company's entertainment segment saw a 95% increase in operating income, driven by box office successes.
* Disney's full-year guidance for 2025 remains intact, with projected high-single-digit EPS growth.
* The company remains committed to raising streaming prices, recognizing the value it offers compared to cable.
* Disney announced its plans to merge its Hulu+ Live TV business with Fubo TV.
* The company is actively searching for a successor to CEO Bob Iger.