Disney Q1 Earnings: Streaming Profitability Surges, Disney+ Subscribers Dip
Q1 Financial Highlights
* Revenue: $24.70 billion (+5% YoY)
* Adjusted EPS: $1.76 (+44% YoY)
* Streaming Segment: Profit of $293 million (vs. $138 million loss in Q1 2022)
* Disney+ Subscribers: 700,000 decline (expected)
Streaming Success Amid Price Hikes
Disney's direct-to-consumer streaming business (Disney+, Hulu) achieved profitability for the third consecutive quarter, exceeding analyst expectations. Despite price increases, Disney+ subscribers declined by 700,000.
Mixed Results in Other Segments
* Domestic Parks and Experiences: Operating income declined 5% due to hurricane impacts and cruise ship pre-opening expenses.
* Disney Entertainment: Operating income surged 95% driven by box office hits like "Mufasa" and "Moana 2."
Strategic Moves
* Merger of Hulu+ Live TV with Fubo TV to enhance the streaming experience.
* Closure of Venu Sports streaming service due to regulatory concerns.
Full-Year Guidance
* High-single-digit earnings per share growth compared to fiscal 2024.
* Parks and Experiences division expected to improve operating income with growth between 6% and 8%.
Management Commentary
* CEO Bob Iger expressed optimism about streaming subscriptions despite price hikes.
* CFO Hugh Johnston indicated potential for further price increases due to the value of streaming compared to cable.