Disney Defies Odds with Stellar Q1 Results
Disney's first-quarter results exceeded expectations, driven by increased spending at U.S. theme parks and a surprising rise in Disney+ subscribers. Despite economic challenges, the company forecasts strong growth in its streaming and park divisions. Earnings outperformed analyst predictions, and the outlook remains positive for fiscal 2025.
Walt Disney has reported quarterly results that surpassed Wall Street expectations, buoyed by an uptick in spending at its U.S. theme parks and unexpected growth in Disney+ subscribers. The company's strategic efforts to enhance profit margins from streaming services and expand its theme park and cruise line offerings are paying off, even amid a challenging economic climate.
Disney's adjusted earnings per share reached $1.45 for the January to March period, beating the consensus analyst forecast of $1.20 as compiled by LSEG. Revenue saw a climb of 7% year-over-year to hit $23.6 billion, exceeding the anticipated $23.14 billion. Operating income for the quarter was reported at $4.4 billion.
CEO Bob Iger expressed optimism for the remainder of the fiscal year, forecasting adjusted earnings of $5.75 per share for fiscal 2025, a 16% increase relative to the previous fiscal year. Disney expects a 6% to 8% rise in operating income within its Experiences segment and double-digit growth in its entertainment unit. Growth was also seen in streaming services, as Disney+ added 1.4 million customers in the past quarter and Hulu saw a 1.1 million subscriber increase.
(With inputs from agencies.)
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