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Disney Reports Strong Q1 2025 Earnings with Revenue Growth and Increased Operating Income
The Walt Disney Company has released its financial results for the first fiscal quarter of 2025, ending December 28, 2024. The company reported a 5% increase in revenues, reaching $24.7 billion compared to $23.5 billion in the same quarter of the previous fiscal year.
Key Financial Highlights:
- Revenues: Increased 5% to $24.7 billion.
- Income Before Income Taxes: Increased 27% to $3.7 billion.
- Diluted Earnings Per Share (EPS): Increased 35% to $1.40.
- Total Segment Operating Income: Increased 31% to $5.1 billion.
- Adjusted EPS: Increased 44% to $1.76.
Related – Disney CEO Bob Iger Pay Jumps to $41 Million in 2024
Segment Performance:
- Entertainment: Operating income increased $0.8 billion to $1.7 billion, driven by strong box office performance (including the top three movies of 2024) and improved profitability in direct-to-consumer streaming. The direct-to-consumer business saw a 16% advertising revenue increase (excluding Disney+ Hotstar in India). Disney+ and Hulu subscriptions reached 178 million, with Disney+ subscribers at 125 million.
- Sports: Operating income increased $350 million to $247 million, fueled by a 15% rise in domestic ESPN advertising revenue.
- Experiences: Operating income remained comparable to Q1 fiscal 2024 at $3.1 billion, despite adverse impacts from Hurricanes Milton and Helene and pre-opening expenses for the new Disney Treasure cruise ship. Domestic Parks & Experiences operating income declined 5%, while International Parks & Experiences saw a 28% increase.
Guidance and Outlook:
- Star India: Deconsolidated in Q1, with an expected equity loss of roughly $300 million for the full year.
- Q2 Fiscal 2025: Anticipates a modest decline in Disney+ subscribers and impacts to Sports segment operating income due to college sports, an additional NFL game, and exiting the Venu Sports JV.
- Fiscal Year 2025: Projects high-single-digit adjusted EPS growth, approximately $15 billion in cash provided by operations, double-digit percentage segment operating income growth in Entertainment, 13% growth in Sports, and 6% to 8% growth in Experiences.
Message from CEO Bob Iger:
“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,” said Robert A. Iger, Chief Executive Officer, The Walt Disney Company. “In fiscal Q1 we saw outstanding box office performance from our studios, which had the top three movies of 2024; we further improved the profitability of our Entertainment DTC streaming businesses; we took an important step to advance ESPN’s digital strategy by adding an ESPN tile on Disney+; and our Experiences segment demonstrated its enduring appeal as we continue investing strategically across the globe. Overall, this quarter proved to be a strong start to the fiscal year, and we remain confident in our strategy for continued growth.”
These results reflect Disney’s ongoing efforts to adapt and innovate across its diverse business segments. The company’s strong performance in Q1 2025 sets a positive tone for the remainder of the fiscal year.
You can read the full First Quarter Earnings for Fiscal 2025 report here.
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