Disney Earnings Beat Expectations as Streaming and Parks Revenue Climb
Disney earnings have outperformed market predictions this quarter, fuelled by resilient Disney+ streaming revenue and strong returns from US theme parks. Despite global economic concerns, Disney’s latest financial report highlights growth across key business segments.
Disney Earnings Show Resilience in Uncertain Times
Walt Disney’s quarterly results stood out amid ongoing worries about tariffs and consumer spending cuts. The company reported adjusted earnings per share of $1.45 for the January-to-March period, exceeding analyst expectations of $1.20 as polled by LSEG. Revenue climbed 7% to $23.6 billion, with operating income reaching $4.4 billion.
CEO Bob Iger expressed confidence, stating, “Despite questions around any macroeconomic uncertainty or the impact of competition, I’m encouraged by the strength and resilience of our business.”
Disney Streaming Revenue Drives Growth
Disney+ Subscriber Growth
A notable highlight from the report was the unexpected boost in Disney+ streaming subscribers. The service gained 1.4 million users during the quarter, after previously warning of a subscriber decline following a price increase. Hulu, another Disney streaming platform, also added 1.1 million subscribers.
Streaming Operating Income Jumps
Operating income for the streaming division reached $336 million, a significant rise from $47 million a year earlier. This marks a key milestone as Disney continues to shift focus from traditional television to digital platforms.
CEO Iger remains optimistic about streaming, noting the company’s plan to add ESPN’s flagship live sports streaming, improve personalisation features, and invest further in international content. The entertainment unit as a whole saw total operating income increase 61% to $1.3 billion year-on-year.
US Theme Parks and Experiences Boost Disney Earnings
Parks and Cruises Outperform
Disney’s Experiences division, led by its US theme parks and expanding cruise line, posted a 9% rise in operating income to $2.5 billion. CFO Hugh Johnston mentioned strong bookings for the third and fourth fiscal quarters. CEO Iger highlighted that the launch of the cruise ship Disney Treasure has attracted “sky high” consumer ratings, while a new ship based in Singapore is already drawing interest.
International Headwinds
Not all markets performed equally; attendance at Shanghai Disney Resort and Hong Kong Disneyland slipped, which executives linked to ongoing economic challenges in China.
Disney Maintains Upbeat Outlook
Future Forecasts
Looking forward, Disney forecasts adjusted earnings per share of $5.75 for fiscal 2025, a 16% rise from the previous year. The company reaffirmed its guidance for 6%-8% operating income growth in the Experiences division and double-digit gains for entertainment operations.
Disney recently revealed plans to open a new theme park in Abu Dhabi, further expanding its global footprint. Despite recent stock price drops, company leaders believe the robust performance in streaming and parks positions Disney well for the future.
Advertising and Film Success
Demand from advertisers remains solid, especially from restaurants and healthcare brands. CEO Iger praised the box office results of Marvel’s “Thunderbolts” and is excited about upcoming titles such as “Elio,” “Zootopia 2,” and “Avatar: Fire and Ash.”
Source
Reuters – Disney earnings soar on resilient streaming, US parks revenue
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