Disney Experiences Weathered the Storms and Delivered a Solid Quarter
The Walt Disney Company delivered its FY2025 first-quarter earnings this morning, and Wall Street generally liked what it heard.
On a macro level, Disney managed to beat its expected earnings per share and exceeded revenue expectations. You can read our full breakdown of the report here.
In the aftermath of the earnings call, much attention has been paid to Disney’s streaming division, which made a profit despite Disney+ losing 700,000 subscribers.
(Photo Illustration by Mateusz Slodkowski/SOPA Images/LightRocket via Getty Images)
I, however, want to focus on Disney Experiences.
The Good News
Disney Experiences, which includes parks, cruises, resorts, and consumer products, saw its revenue rise $3% last quarter to $9.42 billion. $6.43 billion (68%) of that total came from Disney’s domestic theme parks.
EPCOT
While the news was largely good for Disney Experiences, there were some sore spots.
The Domestic Parks Saw Operating Income Drop
Due to the impact of Hurricane Milton and Hurricane Milton, Disney Experiences lost roughly $130 million. Additionally, the launch of the Disney Treasure cost the division another $90 million last quarter.
Cinderella Castle after Hurricane Milton
These factors caused the domestic theme parks’ operating income to drop 5% to $1.98 billion. As Disney notes in its report, however, the drop in attendance, due to the hurricanes, was partially offset by increased guest spending.
Taking external factors into account, Disney can rightfully say that the parks had a successful quarter. Despite the adversity, Disney Experiences’ revenue rose 3%, and domestic theme park revenue rose 2%.
Photo: Disney
Looking ahead, Disney expects its experience segment to see operating income growth of 6% to 8% by the end of FY2025. Hopefully, it will be smooth sailing for Disney going forward.
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