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BURBANK (CNS) - Citing success in its extensive cost-cutting efforts, the Burbank-based Walt Disney Co. Wednesday reported strong first-quarter earnings, with revenue topping $23.5 billion and diluted earnings per share at $1.04, up from 70 cents in the same quarter a year ago.
"Our first quarter earnings results reflect the progress we've made in our strategic transformation, as we continue to build from a position of strength," according to a Disney statement. which pointed to "significant cost reductions across our businesses."
"We are on track to meet or exceed our $7.5 billion annualized savings target by the end of fiscal 2024, while we continue to look for further efficiency opportunities," according to the company.
The company reported a loss of 1.3 million Disney+ subscribers during the quarter, which covered the last three months of 2023. Disney attributed the drop to an increase in the subscription cost and the "end of the global summer promotion." Disney-owned Hulu subscriptions increased by 1.2 million during the quarter.
"Just one year ago, we outlined an ambitious plan to return The Walt Disney Company to a period of sustained growth and shareholder value creation," Disney CEO Robert A. Iger said in a statement. "Our strong performance this past quarter demonstrates we have turned the corner and entered a new era for our company, focused on fortifying ESPN for the future, building streaming into a profitable growth business, reinvigorating our film studios, and turbocharging growth in our parks and experiences.
"As we build for the future, the steps we are taking today lend themselves to solidifying Disney's place as the preeminent creator of global content. Looking at the renewed strength of all of our businesses this quarter - - from Sports, to Entertainment, to Experiences -- we believe the stage is now set for significant growth and success, including ample opportunity to increase shareholder returns as our earnings and free cash flow continue to grow."
Prior to the earnings report, Iger also announced Wednesday that Disney will release a sequel to the popular 2016 animated film "Moana" on Thanksgiving weekend. The project was initially planned as a television series. It was unclear if Dwayne "The Rock" Johnson would be reprising his voice role as Maui in the film. Johnson last year announced plans for a live-action version of the original film.