Disney Q1 revenue and profit both increased, Disney+ lost 700,000 subscribers but still achieved profitability | Financial Report Insights
Data shows that Disney's revenue in the first fiscal quarter increased by 5% year-on-year to $24.69 billion, exceeding the estimated $24.57 billion; net profit grew nearly 23% to $2.64 billion. Disney expects the entertainment segment's revenue to achieve double-digit growth in fiscal year 2025, with the experience business growing by 6% to 8%; the sports business is expected to grow by 13%
On Wednesday, Disney announced its fiscal Q1 2025 results, with both revenue and profit increasing, causing the company's U.S. stock to rise more than 2% in pre-market trading.
Specifically:
Fiscal Q1 revenue increased by 5% year-on-year to $24.69 billion, exceeding the estimate of $24.57 billion.
Fiscal Q1 net profit grew nearly 23% to $2.64 billion.
Fiscal Q1 adjusted earnings per share were $1.76, up from $1.22 in the same period last year and above the estimate of $1.42.
By segment, the entertainment business revenue increased by 9% year-on-year to $10.872 billion, with operating profit rising 95% to $1.7 billion; experience business revenue grew by 3% to $9.42 billion; ESPN sports business revenue increased by 8% year-on-year to $4.81 billion.
At the same time, Disney's flagship service Disney+ saw a 1% decline in subscribers, with domestic subscribers increasing by about 1% and international subscribers decreasing by about 2%. However, Disney+ average revenue per user increased by about 4% to $7.99, and the streaming business remained profitable. But Disney also warned that it expects a "slight decline" in subscriber numbers for the second fiscal quarter.
The total paid subscriber count for Disney+ is 125 million, a decrease of 700,000 from Q4 of fiscal 2024, while Hulu's total subscriber count grew by 3% during this period to 53.6 million, bringing the combined subscriber count to 178 million.
For the outlook of this fiscal year, Disney expects the entertainment segment's operating revenue to achieve double-digit growth, while the experience business's operating revenue is expected to grow by 6% to 8%; the sports business's operating revenue is expected to grow by 13%.
Disney CEO Robert A. Iger stated that the performance this fiscal quarter demonstrates Disney's creativity and financial strength:
“In Q1, our studio's box office performance was outstanding, with three of the top-grossing films of 2024; we further improved the profitability of our entertainment DTC streaming business... Overall, this fiscal quarter proves to be a good start to the fiscal year, and we remain confident in our strategy for continued growth.”
After the earnings report was released, Disney's U.S. stock rose more than 2% in pre-market trading and is currently up 0.7% at $113.30.
