Disney posts solid 1Q results thanks to its theme parks and cost cuts
SAN FRANCISCO (AP) - The Walt Disney Co. posted stronger-than-expected earnings in the October-December quarter, boosted by cost cuts and growing revenue from its theme parks business.
In the fiscal first quarter, Disney earned $1.91 billion, or $1.04 per share. That’s up 49% from $1.28 billion, or 70 cents per share, in the same period a year earlier. Excluding one-time accounting items, the company earned $1.22 per share in the latest quarter..
Revenue was $23.55 billion, roughly the same as last year’s $23.51 billion.
Analysts, on average, were expecting earnings of 99 cents per share on revenue of $23.7 billion, according to a poll by FactSet.
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Disney said it is achieving "significant cost reductions" across its businesses and reduced its selling, general and other operations expenses by $500 million. The company cut thousands of jobs in 2023.
Disney said it lost 1.3 million core subscribers to its Disney+ streaming service during the quarter, but it made more money from each subscriber due to price hikes for the service. It expects to add up to 6 million subscribers in the current quarter.
The company, based in Burbank, California, said its theme parks business saw record revenue and operating income during the quarter.
"Our strong performance this past quarter demonstrates we have turned the corner and entered a new era for our company, focused on fortifying ESPN for the future, building streaming into a profitable growth business, reinvigorating our film studios, and turbocharging growth in our parks and experiences," said CEO Bob Iger in a statement.
Shares of Disney jumped 7.6%, in extended trading after the results came out.