Walt Disney Co.’s (DIS) stock is trading sideways after the entertainment company reported financial results that showed a loss of subscribers at its Disney+ streaming service.
The Mouse House did manage to post fiscal first-quarter financial results that beat Wall Street targets on the top and bottom lines.
Walt Disney announced earnings per share (EPS) of $1.76 U.S., which beat the $1.45 U.S. that had been expected among analysts.
Revenue in the quarter totaled $24.69 billion U.S., which was ahead of forecasts that called for $24.62 billion U.S. Sales were up 4.8% from a year earlier.
Despite the top and bottom-line beats, the company announced a 1% decline in subscribers for Disney+, the company’s flagship streaming service.
While domestic subscriptions in the U.S. increased 1% during the quarter, international subscriptions declined 2%.
Total paid Disney+ subscriptions now stand at 124.6 million, down from 125.3 million at the end of the company’s previous fiscal fourth quarter.
Management at Walt Disney warned that they anticipate another “modest decline” in subscribers during the current quarter.
Still, the average monthly revenue per paid subscriber at Disney+ rose 4% to $7.99 U.S. due to price increases.
Beyond streaming, Disney reported revenue growth across its entertainment, sports, and experiences business units.
The entertainment division saw a 9% jump in revenue to $10.87 billion U.S. The debut of film “Moana 2” over the Thanksgiving weekend pushed the box office to new heights.
Overall, Disney dominated the 2024 box office with hit movies such as Marvel’s “Deadpool & Wolverine” and Pixar’s “Inside Out 2.”
The experiences business, which includes parks, cruises and resorts, saw revenue increase 3% during the quarter to $9.42 billion U.S.
Domestic theme park revenue accounted for 68% of the division’s total, or $6.43 billion U.S. In sports, ESPN reported revenue growth of 8% from a year ago, reaching $4.81 billion U.S.
The stock of Walt Disney Co. has risen 17% to trade at $113.30 U.S. per share.
