The Walt Disney Company began the fiscal year with a strong first quarter, primarily driven by the overwhelming box office success of 'Moana 2'. This animated sequel not only captivated audiences worldwide but also significantly contributed to Disney's impressive financial performance.
In the quarter ending December 28, Disney reported earnings of $2.55 billion, equating to $1.40 per share. This marks an improvement from the previous year's $1.91 billion, or $1.04 per share. When excluding specific items, earnings stood at $1.76 per share, surpassing analysts' expectations of $1.44 per share as gathered by Zacks Investment Research.
Revenue for the Burbank, California-based entertainment giant rose by 5% to $24.69 billion, slightly ahead of Wall Street's forecast of $24.66 billion. A significant portion of this growth can be attributed to the Entertainment segment, where revenues climbed by 9%. Particularly noteworthy was the 34% increase in content sales and licensing, bolstered by the extraordinary performance of 'Moana 2'.
The digital landscape also saw noticeable developments. Although there was a slight dip in Disney+'s total paid subscribers—down by 1% overall due to a 2% international decrease—domestic subscriptions in the U.S. and Canada rose by 1%. Disney anticipates a further modest reduction in subscriptions in the upcoming quarter but remains optimistic about long-term growth. The company projects a robust high-single digit increase in adjusted earnings per share by fiscal 2025.
A closer look at Disney's Experiences division, which encompasses global theme parks, cruise lines, and other entertainment venues, shows that the operating income remained stable at $3.11 billion. However, domestic parks experienced a 5% decrease in operating income, influenced by unforeseen closures like the one-day shutdown of Walt Disney World driven by hurricanes and a canceled cruise. On a positive note, international parks and related experiences witnessed a remarkable 28% surge in operating income.
As Disney continues to navigate a complex and competitive entertainment landscape, it remains committed to leveraging its diverse portfolio to drive sustained growth. The success of 'Moana 2' not only highlights the company's strength in storytelling and production but also reinforces its ability to deliver memorable experiences worldwide.
Following the upbeat earnings report, Disney's shares showed a modest increase in pre-market trading on Wednesday, reflecting investor confidence in its strategic direction and future prospects.
