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.