Disney has reported better-than-expected fiscal first-quarter earnings, with the media giant cutting costs while revenue remained stagnant. The company is on track to meet or exceed its goal of slashing costs by at least $7.5 billion by the end of fiscal 2024. Disney also anticipates fiscal 2024 earnings per share of about $4.60, a minimum of 20% higher than 2023.

The entertainment company announced it will take a $1.5 billion stake in Fortnite studio Epic Games and launch its flagship ESPN streaming service in fall 2025. These developments, coupled with progress in cost-cutting initiatives, come as Disney faces pressure to enhance its results from activist investor Nelson Peltz.

Disney’s earnings per share stood at $1.22 adjusted, surpassing the 99 cents expected, while revenue reached $23.55 billion, slightly lower than the anticipated $23.64 billion. Net income attributable to the company rose to $1.91 billion, or $1.04 per share, compared to $1.28 billion, or 70 cents per share, in the previous year.

The company’s direct-to-consumer unit reported a $138 million operating loss in the quarter. Including the performance at ESPN+, losses for all streaming businesses narrowed to $216 million from $1.05 billion in the prior-year period. Although Disney+ core subscribers decreased by 1.3 million due to price increases, the company experienced a rise in average revenue per user as a result of the subscription cost hikes.

Disney’s earning results coincide with its board’s ongoing struggle with Peltz and Blackwells Capital. The company’s shares surged about 7% in extended trading following the earnings report.

Disney’s progress in cutting costs and its strategic investments demonstrate its commitment to navigating the evolving media landscape and delivering value to its stakeholders.