Disney managed a solid showing in its third quarter, bolstered by movies including Toy Story 5 and ongoing strength from its US theme parks that helped to offset continued weakness from international tourism.
Disney also announced a global short-form content sharing deal with TikTok on Wednesday. The agreement will bring Disney-focused fan-created content from TikTok to the Disney+ app.
Shares climbed more than 3% before the market opened on Wednesday.
The Walt Disney Co cautioned earlier this year that its theme parks division was likely to see modest growth due in part to declining tourism from abroad.
International tourism in the US has waned for a number of reasons after President Donald Trump’s return to the White House, including tariffs, a crackdown on immigrants and repeated jabs at allied nations.
For the third quarter, the Experiences division, which includes Disney’s six global theme parks, its cruise line, merchandise and video game licensing, reported operating income climbed 20% to $3.02bn (R4.94bn) and revenue totaled $9.97bn. Operating income rose 27% at domestic parks, while operating income declined 13% for international parks and Experiences.
Overall attendance at US parks climbed 3% from a year ago on an increase in attendance from domestic tourists and annual passholders. The company said the performance was also helped by summer promotions and new experiences offered at the parks.
Disney earned $2.64bn, or $1.51 (R24.70) per share, for the three months ended June 27. It earned $5.26bn, or $2.92 per share, a year ago.
Removing certain items, earnings were $2.06 per share. That easily topped the $1.86 per share analysts polled by FactSet predicted.
Revenue for the Burbank, California-based company rose 7% to $25.25bn. Wall Street was looking for $25.39bn.
Disney is expected to have a very strong showing at the box office for the rest of the year.
AP
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