Entertainment giant Walt Disney Company posted a 31% surge in net operating income to US$5.1 billion in the first quarter (Q1) of the 2025 financial year (FY25).
The 102-year-old company, whose businesses included film studios, television networks, theme parks and resorts and streaming services, said diluted earnings per share (EPS) soared 35% to $1.40 on revenues which increased 5% to $24.7 billion in Q1.
Walt Disney said entertainment segment operating income rocketed 89% to $1.7 billion, sports operating improved to $247 million from a $10.3 million loss, and ‘experiences’ operating income was barely changed at $3.1 billion in the quarter ended 28 December.
The strength in entertainment helped offset a decline at Disney's domestic theme parks, which were affected by hurricanes Helene and Milton in Florida, and $75 million in expenses associated with the December launch of the Disney Treasure cruise ship.
Chief Executive Officer Robert Iger said the results demonstrated Disney’s creative and financial strength as it advanced strategic initiatives set in motion over the last two years.
He said Disney’s studios had an outstanding box office performance in Q1 with the top three movies of 2024, including Moana 2, the Entertainment DTC streaming businesses improved profitability, an ESPN tile was added to Disney+, and the experiences segment demonstrated its enduring appeal as it continued investing strategically.
“Overall, this quarter proved to be a strong start to the fiscal year, and we remain confident in our strategy for continued growth,” Iger said in a statement.
The company forecast high-single digit adjusted EPS growth for FY25 with double-digit percentage segment operating income growth from the entertainment segment, 13% growth from sports, and 6-8% growth from the experiences segment.
Although adjusted EPS of $1.76 exceeded the consensus of $1.45 and revenue was slightly above analysts’ estimates, Walt Disney (NYSE: DIS) shares eased as the market digested news that Disney+ subscribers had fallen 700,000 to 125 million.
The shares closed at $110.54, down $2.76 (2.44%), after trading between $110.23 and $118.59, capitalising the California-based company at $199.91 billion, and by 8.20am AEDT (9.20pm GMT) had slipped to $10.26 .
