Disney posts better-than-expected quarterly results, driven by theme parks
- Net profit reached $2.48 billion, down 6 percent year-on-year
NEW YORK: The Walt Disney Company reported quarterly earnings Monday that showed streaming services gaining momentum and theme parks revenue hitting record levels.
Net profit reached $2.48 billion, down 6 percent year-on-year, according to a statement, with the Experiences division – Disney’s theme parks and resorts – delivering record quarterly revenue of $10.0 billion.
Domestic parks showed 8 percent operating income growth for the quarter that ended December 31, with attendance up one percent and per capita spending up 4 percent.
Operating income for the company’s Disney+ and Hulu streaming services grew 72 percent from the same quarter a year ago to $450 million, well above expectations.
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However, the Entertainment segment overall saw operating income plunge 35 percent to $1.1 billion, as higher programming and marketing costs more than offset revenue gains from theatrical releases including “Zootopia 2” and “Avatar: Fire and Ash.”
Shares in Disney were up by three percent in pre-session trading.
“We are pleased with the start to our fiscal year, and our achievements reflect the tremendous progress we’ve made,” said CEO Bob Iger in the statement.
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