Disney experienced a successful second quarter with robust profits and revenue, as its domestic theme parks flourished, and the company added over a million new subscribers to its streaming service.
The big picture: The company raised its profit expectations for the year, leading to an 11% increase in shares on Wednesday.
- Disney announced plans to build a seventh theme park in Abu Dhabi as part of its expansion efforts.
- In the three months ended March 30, Disney reported earnings of $3.28 billion, or $1.81 per share, showcasing significant growth compared to a loss of $20 million, or a penny per share, the previous year.
- After adjusting for one-time charges, earnings per share were $1.45, exceeding Wall Street expectations of $1.18 per share.
- Revenue for the quarter rose by 7% to $23.62 billion, surpassing projections, with Disney Entertainment (which includes movie studios and streaming) revenue climbing by 9%, and Experiences (parks) revenue increasing by 6%.
Driving the news: Key box office successes included films like “Moana 2” and “Mufasa: The Lion King,” with current hits like “Thunderbolts” driving box office success.
- Disney’s streaming business continues to grow, with its direct-to-consumer segment (including Disney+ and Hulu) posting a quarterly operating income of $336 million, up from $47 million in the previous year.
- Disney+ reported a 2% increase in paid subscribers domestically and a 1% rise internationally, bringing the total paid subscribers to 126 million in the quarter.
- The combined subscriptions of Disney+ and Hulu reached 180.7 million, up by 2.5 million from the previous quarter.
- A content-rich strategy significantly contributed to Disney’s success, with “Moana 2” and other titles driving streaming growth, making it a direct competitor to platforms like Netflix internationally.
- On the business side, Disney’s Experiences division saw a 9% rise in operating income to $2.5 billion, despite a 23% drop in international park earnings due to challenges faced by Shanghai and Hong Kong locations.
