'Moana 2' sails Disney to profit; posts revenue of $24.69B
What's the story
The Walt Disney Company has posted a strong first fiscal quarter of 2025 with revenues of $24.69 billion, a 5% year-on-year increase. The financial success comes largely on the back of the animated sequel Moana 2 and another successful quarter for its streaming services Disney+ and Hulu. Despite losing 700K subscribers globally, the flagship service Disney+ and Hulu still managed to post an operating income of $293 million on revenue of $6.07 billion, up by 9%.
Financial performance
Disney's net income and EPS exceeded expectations
Disney's net income for the first fiscal quarter of 2025 jumped a whopping 34% to $2.55 billion. This resulted in an adjusted earnings per share (EPS) of $1.76, up 44% year-on-year. The numbers exceeded analysts' expectations who had predicted revenue at $24.55 billion and adjusted EPS at $1.43. The total segment operating income also saw a major increase, growing 31% to $5.1 billion.
CEO's remarks
Disney CEO expressed confidence in strategic growth initiatives
Disney CEO Bob Iger also expressed his satisfaction with the company's performance. He said, "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." He added that this quarter marked a strong start to the fiscal year and reiterated his confidence in their strategy for continued growth.
Revenue boost
'Moana 2' grossed over $1B at the box office
Disney's content sales and licensing revenue saw a whopping 34% jump to $2.2 billion in the year-end 2024 quarter. The operating income for the division stood at $312 million, a stark contrast to the loss of $224 million a year ago. This financial turnaround is largely due to the successful performance of Moana 2, which has grossed over $1 billion globally at the box office so far.
Business restructuring
Disney's joint venture with Reliance Industries in India
During the first fiscal quarter of 2025, Disney ended its joint venture with Reliance Industries in India. The merger combined its Star and Hotstar assets with Viacom18's TV and streaming business. Thanks to this partnership, Disney now owns 37% of the Star India joint venture which has resulted in changes in how it reports certain aspects of its business.