Disney surprised investors by beating quarterly profit estimates, but the company also revealed a decline in streaming subscribers for its flagship service, Disney+. The entertainment giant posted fiscal first-quarter earnings that topped expectations, with revenue increasing 4.8% to $24.69 billion.
Disney’s streaming business reported another quarter of profitability despite a 1% decline in subscribers for Disney+, with international numbers declining more sharply at 2%. Total paid subscriptions stand at 124.6 million, down from 125.3 million at the end of the previous quarter.
The company’s stock was slightly down in premarket trading. Despite this, Disney’s CEO Bob Iger expressed optimism about the company’s performance, citing outstanding box office results for its studios and a strong debut for “Moana 2.”
However, the decline in streaming subscribers raises concerns about Disney’s ability to maintain growth in the competitive streaming market. The company expects another “modest decline” in subscribers during the second quarter.
In other segments, Disney’s experiences business saw revenue rise 3% to $9.42 billion, driven by a strong performance from its parks segment. However, domestic theme park operating income declined 5%, likely due to Hurricanes Milton and Helene.
Disney also reported solid growth in its sports segment, with ESPN’s revenue increasing 8% year-over-year. The company expects double-digit growth in operating income for the entertainment segment in fiscal 2025, driven by a boost from content sales and licensing.
Source: https://www.cnbc.com/2025/02/05/disney-dis-earnings-q1-2025.html