Disney reports strong earnings, but streaming subscribers keep falling
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Disney posted strong fourth-quarter earnings, beating analysts’ expectations, but a concerning loss of 700,000 Disney+ subscribers overshadowed the positive revenue and profit growth.
The company reported $24.69 billion in revenue, slightly above the $24.62 billion forecast, with earnings per share coming in at $1.76, well ahead of the expected $1.45. However, the Disney+ subscriber base fell to 124.6 million from 125.3 million, signaling continued struggles in the streaming business. Management warned of further modest declines in the upcoming quarter.
Despite the subscriber exodus, Disney’s entertainment division performed well, fueled by box office successes. Operating income soared 95%, driven by blockbuster releases such as Moana 2 and Mufasa: The Lion King. CEO Bob Iger highlighted the strong performance of Marvel’s Deadpool & Wolverine and Pixar’s Inside Out 2, both of which are expected to contribute significantly in 2025.
Disney stock declined 2.4% following the earnings release, as investors weighed the solid financial performance against the ongoing streaming challenges and subscriber churn. The focus now shifts to whether Disney can stabilize its streaming business while capitalizing on its theatrical successes.
The company reported $24.69 billion in revenue, slightly above the $24.62 billion forecast, with earnings per share coming in at $1.76, well ahead of the expected $1.45. However, the Disney+ subscriber base fell to 124.6 million from 125.3 million, signaling continued struggles in the streaming business. Management warned of further modest declines in the upcoming quarter.
Despite the subscriber exodus, Disney’s entertainment division performed well, fueled by box office successes. Operating income soared 95%, driven by blockbuster releases such as Moana 2 and Mufasa: The Lion King. CEO Bob Iger highlighted the strong performance of Marvel’s Deadpool & Wolverine and Pixar’s Inside Out 2, both of which are expected to contribute significantly in 2025.
Disney stock declined 2.4% following the earnings release, as investors weighed the solid financial performance against the ongoing streaming challenges and subscriber churn. The focus now shifts to whether Disney can stabilize its streaming business while capitalizing on its theatrical successes.