Walt Disney Co. defeated Wall Street’s expectations in the latest quarter, and the company’s entertainment division and streaming business led the claim.
Disney reported $ 24.7 billion in the first quarter of December 28, increasing by 5 % a year ago. Segment operating income was $ 5.1 billion, with $ 1.76 per share, up 31 %, up 44 %.
In entertainment, Moana 2 supplied power to the category, earning profits by 9 % year -on -year, and operating income increased to $ 1.7 billion. The direct consumers continued to grow on the growth track and generated $ 293 million operating income.
Disney had previously reduced the number of subscribers, but it was realized with Disney+, which reduced 700,000 subscribers to 146 million, but Hulu was integrated into Disney+. As a result, 1.6 million subscrients were added to 53.6 million. The number of subscribers was better than the street expected. Especially growing in Hulu.
Disney CFO High -Johnstone told Wall Street analysts that the company is expecting the growth of subscribers this year.
“Our expectations are particularly paid shared. If you add slate of the movie produced in the latter half of the 24 and add it to the streaming service to ’25, I think that the content will drive the sub. Johnston said.
“We recently raised the price, but we anticipated that Chang was expected to increase significantly,” said Bob Igar, Disney’s CEO. “And after all, we delivered better numbers than expected.”
On the other hand, Iger seems to be optimistic about the company’s linear TV network, saying, “We are at the point where the company’s linear network is not burdensome at all. They are now shifting to the company’s streaming. It is pointed out that it is funded at a level that can be supported.
However, he noted that several cable channels could be changed, including the possibility of sales.
“I do not eliminate the possibility of different configurations in the form of some small networks, how to lead them to the market, and how to bring their own rights,” he said. I said. “Now, we feel good about the hands we have.”
Meanwhile, the Disney Experience category was hit by Hurricane Milton and Helen, as well as the costs related to the launch of Disney Leather Cruise ships. Hurricane was influenced by $ 120 million, and Milton closed the Disney World for a day.
The revenue of the department was $ 9.4 billion, increased by 3 % from the previous year, the operating profit was $ 3.1 billion from the previous year, and if it is not a single problem, the division has a more healthy margin. Suggests.
In ESPN, domestic revenue was $ 4.4 billion, an increase of $ 9 % from the previous year, the domestic operating income of $ 231 million, down 9 %, and was mainly related to the college playoffs.
Disney also reported $ 50 million expenses related to the decision to defeat streaming service Venu.
VENU’s death has released a few skinny bundles focusing on sports, and Disney’s CEO Bobuigers say to Wall Street analysts that they intend to use them.
The goal related to ESPN is that ESPN is as easy to access as much as possible and to access consumers in as many ways as possible, “Iger says. “Some people want to consume it with the app alone. Some people want to consume it as part of a more traditional and expanded basic bundle, while others move in the direction of only skinny bundles and sports bundles. It is not possible to make a serious effect on the appearance of these skinny bundles.
Similarly, Igar has a bullish chance of ESPN as a streaming product of standalone, and noted that the company will use Disney+and Hulu to promote submarines to products at the time of release.
“We are 365 days a day, not only for sports and sports programming menus that no one has,” says Igar. “So, if you’re a sports fan, it’s not as much as one boxing event or soccer, it’s about every day and every day sports, and it’s pretty convincing. It is a pretty consumer proposal.
“The results of this year have shown the creative and financial skills of Disney because we have advanced strategic initiatives held over the past two years,” said Bob Igar, Disney’s CEO. 。 “In the first quarter Q1, the outstanding performance performance from the studio with the top three movies in 2024 was seen. In addition, the profitability of the entertainment DTC streaming business has been improved. Disney+to ESPN tile. By adding, we have taken important steps to promote the digital strategy of ESPN, and our experience segments are strategically investing in the world. As a whole, we are confident that this quarter is a strong start of the fiscal year. “
Compared to Q1, the company provided additional guidance to Q2, including the further decrease in Disney+subcliver, and the higher cost and additional NFL game of ESPN related to university sports.
