The box office success of Moana 2 helped push Disney’s earnings up 27 per cent in its financial first quarter and offset declines at its theme parks group, which was affected by two hurricanes in Florida and the cost of expanding its cruise line.
Disney ended a strong year at the cinemas with holiday releases of Moana 2 and Mufasa: The Lion King, which contributed to a 95 per cent increase in operating income in the company’s entertainment group in the quarter from a year earlier. “We saw outstanding box office performance from our studios,” Bob Iger, Disney chief executive, said in a statement.
Disney’s studios had the top three films worldwide last year – Inside Out 2, Deadpool & Wolverine and Moana 2 — ma–king a rebound from a lacklustre performance in 2023 that had raised investor concerns about its creative spark.
Net income before taxes rose to $3.66 billion (€3.5 billion) in the quarter from $2.87 billion a year earlier. The company reported adjusted earnings of $1.76 per share, up from $1.22 a year earlier and exceeding Wall Street estimates of about $1.45 per share.
Revenue at the streaming business, which includes Disney+ and Hulu, rose 9 per cent and generated $293mn in operating income, reversing a $140mn loss a year earlier. Together, Disney+ and Hulu have 178 million paid subscribers, which increased by about 900,000 in the quarter.
But the company expects a “modest decline” in Disney+ subscribers in the current quarter. Revenue and operating income fell at Disney’s traditional television business.
Investors have been closely watching Disney’s theme parks and experiences group, which roared back after the end of pandemic restrictions but have slowed in recent quarters.
The company said Hurricanes Milton and Helene had a $120 million impact on Disney World in Florida and the cancellation of a cruise itinerary. But the non-US parks and experiences business posted a 28 per cent increase in operating income from a year earlier.
The launch of the Disney Treasure cruise ship cost $75 million in pre-opening expenses in the quarter, and the company said it expected to spend a total of about $200mn to expand the Disney Cruise Line in financial 2025.
For all of 2025, Disney said it expected to generate about $15 billion in cash from operations, with operating income from its streaming business reaching $875 million this year.
Disney’s shares are up about 18 per cent over the past year, compared with 22 per cent for the S&P 500. - Co–yright The Financial Times Limited 2025
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