In This Article:
Disney posted solid profits and revenue in the second quarter as its domestic theme parks thrived and the company added well over a million subscribers to its streaming service.
The company also boosted its profit expectations for the year, sending shares up 11% Wednesday.
Disney also announced that it will build a seventh theme park in Abu Dhabi.
For the three months ended March 30, Disney earned $3.28 billion, or $1.81 per share. The Burbank, California, company lost $20 million, or a penny per share, a year earlier.
Removing one time charges or benefits, earnings were $1.45 per share, easily topping the $1.18 that Wall Street was expecting, according to a survey by Zacks Investment Research.
Revenue rose 7% to $23.62 billion, also topping projections.
Revenue for Disney Entertainment, which includes the company's movie studios and streaming service, climbed 9%, while revenue for the Experiences division, its parks, increased 6%.
Recent box office hits include “Moana 2” and “Mufasa: The Lion King.” Its latest film, “Thunderbolts(asterisk),” is currently sitting atop the box office. CEO Bob Iger and Chief Financial Officer Hugh Johnston said in prepared remarks that they're confident in this year's movie slate, which includes “Lilo & Stitch,” “The Fantastic Four: First Steps” and “Avatar: Fire and Ash.”
Disney, however, faces potential ramifications from the trade war launched by President Donald Trump. Other U.S. corporations have noted blowback by consumers in overseas markets and on Monday, Trump opened a new salvo in his tariff war, targeting films made outside the U.S.
Trump on Monday said that he had he authorized a 100% tariff “on any and all Movies coming into our Country that are produced in Foreign Lands.”
Disney is already under scrutiny by the Trump administration. In March the head of the Federal Communications Commission said that he was opening an investigation into Disney and its ABC television network to determine if they are “promoting invidious forms of DEI discrimination."
As of now, Disney's streaming business continues to grow. Its direct-to-consumer business, which includes Disney+ and Hulu, posted quarterly operating income of $336 million compared with $47 million in the prior-year period. Revenue increased 8%.
The Disney+ streaming service had a 2% increase in paid subscribers domestically, which includes the U.S. and Canada. There was a 1% rise internationally, which excludes Disney+ HotStar.
Total paid subscribers for Disney+ edged up 1% in the quarter to surprising 126 million subscribers, from 124.6 million in the first quarter. The Walt Disney Co. previously said that it expected a modest decline in Disney+ subscribers in the second quarter when compared with the first three months of the year.