Disney's Q1 FY25 Earnings: Parks See Growth Internationally, Domestic Parks Decline

Feb 05, 2025 in "The Walt Disney Company"

Posted: Wednesday February 5, 2025 7:00am ET by WDWMAGIC Staff

The Walt Disney Company today reported earnings for its first fiscal quarter ended December 28, 2024, showing overall revenue and profit growth despite challenges in its Parks, Experiences, and Products division. While international parks saw strong gains, domestic parks faced headwinds from hurricane-related closures and rising costs tied to Disney Cruise Line expansion. Increased guest spending helped offset some of the pressure, and Disney remains focused on long-term growth with continued investment in its theme parks and experiences.

"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," said Robert A. Iger, Chief Executive Officer, The Walt Disney Company. "In fiscal Q1 we saw outstanding box office performance from our studios, which had the top three movies of 2024; we further improved the profitability of our Entertainment DTC streaming businesses; we took an important step to advance ESPN's digital strategy by adding an ESPN tile on Disney+; and our Experiences segment demonstrated its enduring appeal as we continue investing strategically across the globe. Overall, this quarter proved to be a strong start to the fiscal year, and we remain confident in our strategy for continued growth."

Company-Wide Performance

  • Total Revenue: $24.7 billion, up 5% year-over-year.
  • Operating Income: $5.1 billion, up 31% year-over-year.
  • Earnings Per Share (EPS): $1.40, up 35% from Q1 FY24.
  • Free Cash Flow: $739 million, down 17% due to higher capital expenditures.

Key growth drivers included:

  • Strong performance in the Entertainment division, driven by content sales (including Moana 2).
  • Profitability improvements in Direct-to-Consumer streaming (Disney+ and Hulu).
  • Steady results from the Parks & Experiences segment, despite weather-related challenges.

Parks & Experiences Performance

Disney's Parks, Experiences, and Products segment remained a strong revenue source but faced headwinds from hurricanes and cruise-related costs.

  • Revenue: $9.4 billion, up 3% year-over-year.
  • Operating Income: $3.1 billion, flat compared to Q1 FY24.

Domestic Parks & Experiences

  • Revenue: $6.4 billion, up 2% year-over-year.
  • Operating Income: $2.0 billion, down 5%.
  • Impacted by Hurricanes Milton and Helene, leading to a one-day closure of Walt Disney World and a canceled Disney Cruise Line itinerary. The hurricane-related closures had an estimated $120 million negative impact on Disney's Parks, Experiences, and Products segment in Q1 FY25.
  • Guest spending increased but was offset by lower attendance and higher costs, including inflation and fleet expansion at Disney Cruise Line.

International Parks & Experiences

  • Revenue: $1.65 billion, up 12%.
  • Operating Income: $420 million, up 28%.
  • Growth driven by higher guest spending and increased attendance.

Consumer Products

  • Revenue: $1.34 billion, down 2%.
  • Operating Income: $708 million, up 1%.

View the Disney Q1 FY25 Earnings full report.

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    disneylandtourFeb 20, 2025

    I know "they" didn't. The person I quoted in my response here did: "True, consider a whole week WDW can’t sell LLMP, LLSP, LLPP! That is a LOT of free money LOST."

    peter11435Feb 19, 2025

    Actually that’s not what I said at all. Nothing I said even requires the least bit of inside information

    SirwalterraleighFeb 19, 2025

    …nothing there has been “slammed” in like…6 years?

    SirwalterraleighFeb 19, 2025

    You said “trust me…I know something but I can’t say any details” The same as always…NOTHING!!! Spspspspiitttt it out, Junior!!!

    SirwalterraleighFeb 19, 2025

    I wish you had told me that 5 days before Lehman bros crashed 🤬

    monothingieFeb 19, 2025

    https://www.cnbc.com/2025/02/18/disney-stock-is-a-bargain-on-the-dip-jim-cramer-says.html No investment advice, but always do the opposite of what Jim Cramer says.

    HauntedPirateFeb 18, 2025

    Not that I don't enjoy posters going at it, but you really didn't say anything except repeat what Disney itself said - There were closures and they lost revenue as a result. 🤷‍♂️ We know the parks closed for a full day due to Milton, and a Halloween party was cancelled. Helene's day of park closures were in September, not October, and those closures specifically would have no bearing on Q1 revenue numbers. But if you were to say something like, "Roughly 3% of incoming reservations were cancelled as a result of Helene, which had a slight residual effect on Q1 earnings, and roughly the same amount of reservations were cancelled due to Milton", that would be something not heard before. And it would shed a lot of light on the statement Disney made about the closures without giving away a source, since it could have come from any one of probably a hundred people (maybe more) that works for the company. YMMV. Just posting what I see from my admittedly-cheap seat.

    peter11435Feb 18, 2025

    I wasn’t vague. I made two very clear statements. Sorry you missed them.

    SirwalterraleighFeb 18, 2025

    lol…the “I know…but I must be vague” routine… That works for those that just fell off the truck. How about you spit it next time? Instead of whatever this is…you prefer…

    HauntedPirateFeb 18, 2025

    "I'm sorry, HAL. That only happens 2 days before a hurricane hits."

    MisterPenguinFeb 18, 2025

    If people are going to cancel their trips, I wish they'd do it right now. EPCOT is slammed today.

    peter11435Feb 18, 2025

    You’re the king of saying nothing. I’m sorry you were unable to recognize the very obvious facts in my post.

    SirwalterraleighFeb 18, 2025

    You can’t be incorrect when you say nothing, inspector clouseau

    peter11435Feb 18, 2025

    This what? Nothing I said was incorrect and nothing I said should be controversial unless you want to deny reality.