Burbank(US), Aug 6 (AP) Disney's profit and revenue climbed in its fiscal third quarter as the entertainment company continued to add subscribers to its streaming service and see strength at its domestic theme parks.
It also raised its full-year adjusted earnings forecast on Wednesday.
The Walt Disney Co. earned USD5.26 billion, or USD2.92 per share, for the three months ended June 28. A year earlier it earned USD2.62 billion, or USD1.43 per share.
Excluding certain items, earnings were USD1.61 per share. This easily beat the USD1.46 per share analysts polled by Zacks Investment Research were looking for.
Revenue for the Burbank, California, company totalled USD23.65 billion, falling slightly short of Wall Street's estimate of USD23.68 billion.
Last night the NFL announced that it had entered into a nonbinding agreement with ESPN, which Disney owns. Under the terms, ESPN will acquire NFL Network, NFL Fantasy and the rights to distribute the RedZone channel to cable and satellite operators and the league will get a 10 per cent equity stake in ESPN.
Revenue for Disney Entertainment, which includes the company's movie studios and streaming service, edged up 1 per cent, while revenue for the Experiences division, its parks, increased 8 per cent.
Disney's direct-to-consumer business, which includes Disney+ and Hulu, posted quarterly operating income of USD346 million compared with a loss of USD19 million a year ago. Revenue climbed 6 per cent.
The Disney+ streaming service had no change in paid subscribers domestically, which includes the US and Canada. There was a 2 per cent rise internationally, which excludes Disney+ HotStar.
Total paid subscribers for Disney+ came to 128 million subscribers, up from 126 million in the second quarter.
Disney+ and Hulu subscriptions totaled 183 million, up 2.6 million from the second quarter.
The Experiences division, which includes Disney's six global theme parks, its cruise line, merchandise and video game licensing, reported operating income increased 13 per cent to USD 2.52 billion. Operating income climbed 22 per cent at domestic parks. Operating income declined 3 per cent for international parks and Experiences.
Disney announced in May that it will build a seventh theme park in Abu Dhabi.
“We have more expansions underway around the world in our parks and experiences than at any other time in our history,” CEO Bob Iger said in a statement. "With ambitious plans ahead for all our businesses, we're not done building, and we are excited for Disney's future.”
For fiscal 2025, Disney now anticipates adjusted earnings of USD 5.85 per share. It previously predicted USD 5.75 per share. Analysts surveyed by FactSet expect full-year earnings of USD 5.80 per share.
While Disney continues to pull levers to successfully manage all of the different components of its business, it's also working on its search for a successor to Iger, the face of Disney for most of the past two decades.
Disney created a succession planning committee in 2023, but the search began in earnest last year when the company enlisted Morgan Stanley Executive Chairman James Gorman to lead the effort.
Disney does have some time, as Iger agreed to a contract extension that keeps him at the company through the end of 2026.
Disney is looking at internal and external candidates. The internal candidates are widely believed to include the chairman of Disney-owned ESPN, Jimmy Pitaro, Chairperson of Walt Disney Parks and Resorts Josh D'Amaro, Disney Entertainment Co-Chairman Alan Bergman and Disney Entertainment Co-Chairman Dana Walden.(AP)
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