Los Angeles - The Walt Disney Company (DIS) reported its first-quarter fiscal year 2025 (October-December 2024) earnings on Tuesday, beating Wall Street expectations for both revenue and earnings per share (EPS). However, the company's stock price declined following the report due to a drop in streaming subscribers.

Disney's revenue for the quarter was $24.69 billion, up 5% from the same period last year. Adjusted EPS was $1.76, exceeding analysts' average estimate of $1.45. Operating income increased by 31% year-over-year to $5.06 billion.

Despite the strong financial results, Disney+ lost 700,000 subscribers during the quarter, bringing its total subscriber count to 125 million. This decline is attributed to a price increase for the streaming service, according to CNBC. Disney expects further slight subscriber losses in the next quarter.

On the bright side, Disney's entertainment business saw a 95% increase in operating income, driven by the success of the animated film "Moana 2". The sports business also performed well, with increased advertising revenue for ESPN. However, the experiences business, which includes theme parks, saw a 5% decline in operating income due to the impact of hurricanes on Walt Disney World in Florida.

Disney also announced that it is discontinuing its plans to launch a sports streaming platform with Warner Bros. Discovery and Fox. This decision will result in a $50 million loss in the next quarter.

Following the earnings release, Disney's stock price initially rose slightly but then fell, trading down 1.49% at $111.61 as of 1 p.m. Eastern Time.

[ⓒ Global Economic Times. 무단전재-재배포 금지]