Lock the editor’s digest lock for free
Roula Khalaf, the editor of FT, selects his favorite story in this week’s newsletter.
The success of Moana 2’s box office revenue has been a theme Parks Group, which was influenced by the two hurricane and cruise line expansion costs in Florida, which increased Disney’s earnings by 27 % in the first quarter and promoted a decrease in offset. 。
Disney has ended a strong year in the cinema with the Holiday Release of Moana 2 and Mufasa: Lion King. This contributed to the 95 % increase in operating profit of the company’s entertainment group in the quarter of the previous year. “We saw an outstanding performance performance from the studio,” said Bob Igar, the highest executive of Disney.
Disney’s studio won the top three movies around the world last year. Inside2, Deadpool & Wolverine, and Moana 2 have rebounded from the inactive performance of 2023, which raised concerns about the creative sparks in 2023.
The net income before tax rose from $ 2.87 billion in the previous year to $ 3,666 million in quarterly. Disney reports a 1.76 -coated profit per share, increasing from $ 1.22 in the previous year, exceeding the $ 1.45 wall street per share.
Streaming business revenue, including Disney+and Hulu, increased by 9 %, generated operating income $ 293 million, and overturned $ 140 million the previous year. Disney+and Hulu have 178 million paid subscribers, which increased by about 900,000 in the quarter.
However, the company was expecting Disney+subscriber’s “modest decrease” in the current quarter, causing some concerns among investors. A call with an investor stated that Disney executives are investing in streaming services. Hanna Howard, a portfolio manager of Gabelli Funds, will help to add and maintain the subscriber.
“They focus on the right streaming side,” said Howard. “They believe they are suitable for growing subscriptions in the next few years and increasing their profits.”
In Disney’s traditional television business, revenue and operating income have continued to decrease. However, while calling with investors, Iger called the network business “asset” and supported streaming services. Last year, a rival COMCAST announced that it was discharging a part of the cable TV assets, but Igara said on television that “we really feel good.”
Igara stated that some of the small networks do not eliminate the possibility of “composed in different ways”.
Investors also look closely at Disney theme parks and the Experience Group.
The company said Hurricane’s Milton and Helen had a $ 12 million impact on the Cancellation of the Disney World and Cruise itinerary in Florida. However, non -US parks and experience have posted 28 % of operating income since the previous year.
The launch of the Disney Tra Sea Cruise Ship would cost $ 75 million in advance for the quarterly, with a total of about $ 200 million to expand the 2025 Disney cruise line.
Regarding all of 2025, Disney stated that this year’s operating profit from the streaming business has reached $ 875 million this year, which is expected to create about $ 15 billion of cash from the operation.
Disney stocks have increased by about 15 % in the past year compared to 22 % of S & P 500.
