Disney posts better-than-expected quarterly results, driven by theme parks

Disney posts better-than-expected quarterly results, driven by theme parks

Net profit reached US$2.48 billion, down 6 percent year-on-year, with the Experiences division namely Disney's theme parks and resorts delivering record quarterly revenue of US$10 billion.

The Walt Disney World entrance in Kissimmee, Florida. Domestic parks posted 8% operating income growth in the quarter ended Dec 31. (EPA Images pic)
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 US$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 US$10.0 billion.

Domestic parks showed 8 percent operating income growth for the quarter that ended Dec 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 US$450 million, well above expectations.

However, the Entertainment segment overall saw operating income plunge 35 percent to US$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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