Box-office smash 'Moana 2' drives Disney profit in the first quarter

Alan Bergman, co-chairman of Disney Entertainment, addresses the audience during the Walt Disney Studios presentation at CinemaCon 2024, Thursday, April 11, 2024, at Caesars Palace in Las Vegas. (AP Photo/Chris Pizzello, File)

NEW YORK — Disney easily topped first-quarter expectations thanks in part to the box office success of “Moana 2.”

The Walt Disney Co. earned $2.55 billion, or $1.40 per share, for the period ended Dec. 28. The Burbank, California-based company earned $1.91 billion, or $1.04 per share, in the prior-year period.

Stripping out certain items, earnings were $1.76 per share. This topped the $1.44 per share that analysts surveyed by Zacks Investment Research anticipated.

Revenue rose 5% to $24.69 billion, surpassing Wall Street’s estimate of $24.66 billion.

Revenue in Disney’s Entertainment segment increased 9%. Revenue for content sales/licensing and Other jumped 34% due to the strong performance of “Moana 2.”

The Disney+ streaming service had a 1% increase in paid subscribers domestically, which includes the U.S. and Canada. But there was a 2% drop internationally, which excludes Disney+ HotStar. Total paid subscribers for Disney+ dipped 1% in the quarter.

Looking ahead, Disney said that it foresees a modest decline in Disney+ subscribers in the second quarter when compared with the first quarter. The company still anticipates high-single digit adjusted earnings per share growth for fiscal 2025.

The Experiences division, which includes six global theme parks, its cruise line, merchandise and videogame licensing, reported operating income was basically flat at $3.11 billion. Operating income fell 5% at domestic parks, as hurricanes caused Walt Disney World to close for a day and canceled a cruise. Operating income rose 28% for international parks and Experiences.

Shares rose slightly before the market open on Wednesday.

Michelle Chapman, The Associated Press