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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