Disney (DIS) recently reported its quarterly results, showing healthy numbers in both revenue and earnings. The demand for the company's theme parks increased significantly during the holiday season, contributing to positive results. There is a slight dip mentioned in Disney+ subscribers in the first quarter. Due to the absence of the Indian Premier League cricket tournament, streaming losses narrowed to $1.1 billion from $1.5 billion in the fourth quarter. The loss was ahead of the company's previous guidance, as Disney's ad-supported tier and recent price increases helped to reduce losses.
The first earnings report for Disney since CEO Bob Iger's return to the company in November, and shares of the company increased by 3% following the news. Disney's first-quarter results showed a beat on both the top and bottom lines, surpassing Wall Street's consensus estimates as compiled by Bloomberg. The revenue for the quarter came in at $23.51 billion, compared to the expected $23.4 billion. The company also recorded adjusted earnings per share (EPS) of $0.99, higher than the expected $0.75. Despite a slight dip in Disney+ subscribers, which was expected due to the absence of the Indian Premier League cricket tournament on its Indian brand, Disney+ Hotstar, the company still recorded 161.8 million subscribers, only missing the expected 164 million by a small margin. The parks, experience, and consumer products revenue exceeded expectations, coming in at $8.74 billion versus the expected $8.08 billion.
In the earnings release, Bob Iger stated, "After a solid first quarter, we are embarking on a significant transformation, one that will maximize the potential of our world-class creative teams and our unparalleled brands and franchises. We believe the work we are doing to reshape our company around creativity while reducing expenses, will lead to sustained growth and profitability for our streaming business, better position us to weather future disruption and global economic challenges, and deliver value for our shareholders."
On the parks side of the business, operating income reached $3.05 billion, which was an improvement from the previous quarter when recession fears affected consumer spending. Last month, Disney announced updates to its parks reservation system and annual pass holder program, which was a response to consumer backlash over wait times and high ticket prices. Despite a challenging 2022, with shares falling by 45%, the stock has increased by 20% year-to-date heading into earnings.