09:14 AM EST, 02/05/2025 (MT Newswires) -- Walt Disney's ( DIS ) fiscal first-quarter results topped market expectations amid entertainment business strengths, while the company recorded a sequential decline in Disney+ subscribers.

The media and entertainment giant on Wednesday reported adjusted earnings of $1.76 a share for the quarter ended Dec. 28, up from $1.22 the year before and ahead of the FactSet-polled consensus of $1.45. Revenue grew 5% year over year to $24.69 billion, just above the Street's view for $24.67 billion.

"Our results this quarter demonstrate Disney's ( DIS ) creative and financial strength as we advanced the strategic initiatives set in motion over the past two years," Chief Executive Robert Iger said in a statement. Disney ( DIS ) saw "outstanding box office performance" from its studios division and "further improved" the profitability of its direct-to-consumer streaming business, according to Iger.

In the entertainment segment, revenue increased 9% year over year to $10.87 billion, as gains in direct-to-consumer and content sales and licensing helped more than offset a 7% decline in linear networks. The company's combined direct-to-consumer streaming businesses posted operating income of $293 million versus a loss of $138 million a year ago. Disney's ( DIS ) "Moana 2" helped drive a $312 million operating income for content sales and licensing, compared with a loss of $224 million in the prior-year quarter, it said.

The number of Disney+ subscribers ticked down 1% sequentially to 124.6 million, while Hulu's paid subscribers increased 3% from the September quarter to 53.6 million. For the ongoing three-month period, the company expects a "modest" decline in Disney+ subscribers versus the previous quarter.

The experiences division's revenue gained 3% from last year to $9.42 billion. Domestic parks and experiences rose 2% to $6.43 billion, while the international side logged growth of 12%. Consumer products sales fell 2% to $1.34 billion. The company's sports segment edged higher to $4.85 billion from $4.84 billion in the 2023 quarter.

"Overall, this quarter proved to be a strong start to the fiscal year, and we remain confident in our strategy for continued growth," according to Iger.

Disney ( DIS ) continues to project high-single-digit growth in adjusted EPS for fiscal 2025 on an annual basis, while the Street is looking for $5.41. The company maintained its previous guidance for double-digit operating income growth in its entertainment segment, 13% operating income gain in the sports unit and a 6% to 8% increase in operating income in the experiences division.

The group anticipates operating income in its sports segment to be adversely impacted by around $100 million in the second quarter due to college sports and one additional National Football League game, and by about $50 million due to the company's exit from its Venu Sports streaming service joint venture with other media companies.