The box office tidal wave of “Moana 2” lifted Walt Disney Co.’s results for the fiscal first quarter, even as its reliable theme park sector was hampered by dual hurricanes in Florida.
The Burbank media and entertainment giant reported $24.7 billion in revenue for the three-month period that ended Dec. 28, a 5% increase compared to the previous quarter. Earnings before taxes totaled $3.7 billion, up 27% compared with the previous year. Earnings per share were $1.40 for the quarter, up from $1.04.
“Our results this quarter demonstrate Disney’s creative and financial strength as we advanced the strategic initiatives set in motion over the past two years,” company Chief Executive Bob Iger said in a statement. “Overall, this quarter proved to be a strong start to the fiscal year, and we remain confident in our strategy for continued growth.”
Disney’s entertainment segment, which includes its studios and Disney+ and Hulu streaming businesses, had another big fiscal quarter, notching $10.9 billion in revenue, an increase of 9% compared to the same period a year earlier.
Operating income for the sector nearly doubled to $1.7 billion, buoyed largely by the box office success of “Moana 2,” the sequel to the popular 2016 film about an adventurous teenager, starring the voice talents of Auli’i Cravalho and Dwayne Johnson.
Revenue for content sales and licensing, which includes theatrical film distribution, as well as sales and licensing of TV and film content, was up 34% to $2.2 billion, compared to $1.6 billion the previous year. The comparable period in 2023 included the animated film “Wish” and the superhero movie “The Marvels,” which disappointed at the box office.
The company also saw continued gains in its streaming business.
Revenue for Disney’s entertainment streaming business, which includes Disney+ and Hulu, was $6.1 billion, an increase of 9% compared to the previous year. The two services had a total of 178 million subscribers in the first quarter, an increase of about 900,000 compared to the same period a year earlier. However, Disney+-only subscriptions were down 1% to 124.6 million, reflecting a price increase that quarter, which led to churn.
But it wasn’t all good news for Disney’s entertainment division. The company’s linear networks continued to struggle, reporting revenue of $2.6 billion, a 7% decrease compared to the previous year’s quarter, and operating income of $1.1 billion, down 11% compared to last year. Disney said the declines were because of higher programming costs and a decrease in affiliate revenue due to cord-cutting.
Disney’s experiences division, which includes its lucrative theme parks, cruise line and specialty travel experiences like the Aulani resort in Hawaii, reported revenue of $9.4 billion, up 3% compared to last year. The segment’s operating income was essentially flat for the quarter at $3.1 billion. Domestically, Disney’s parks and experiences reported $2 billion in operating income, a decrease of 5% compared to the previous year.
Disney attributed the softer results — particularly in its domestic parks and cruises — to previously announced costs to launch its newest cruise ship, the Disney Treasure, as well as inflation and Hurricanes Helene and Milton. The company closed Walt Disney World Resort for a day and canceled a cruise itinerary due to Hurricane Milton.
The company’s sports business, which includes ESPN, reported revenue of $4.9 billion, essentially flat compared to the previous year. The segment’s operating income was $247 million, compared to a loss of $103 million during the prior year’s quarter. Domestic advertising revenue on ESPN increased 15% compared to the previous quarter a year earlier.