Streaming and theme park spending helped propel Walt Disney Co.’s earnings during the fiscal second quarter, as analysts wait to see whether broader economic uncertainty will dampen the entertainment giant’s prospects.
The Burbank firm reported $23.6 billion in revenue for the three-month period that ended Mar. 29, a 7% increase compared with the same quarter a year earlier. Earnings before taxes totaled $3.1 billion, up $2.4 billion from last year. Earnings per share were $1.81, up from a loss of $0.01.
“Overall, we remain optimistic about the direction of the company, and our outlook for the remainder of the year,” Disney Chief Executive Bob Iger said in a statement.
The company’s entertainment unit, which includes its studios and Disney+ and Hulu streaming services, reported revenue of $10.7 billion, up 9% compared to the previous year. Operating income for the division rose 61% to $1.3 billion.
The segment saw a boost from its streaming services, which reported revenue of $6.1 billion, up 8% from the previous year, and operating income of $336 million for the quarter, up from $47 million last year.
In total, the two services now have 180.7 million subscribers, with an increase of 2.5 million subscribers from the fiscal first quarter.
Those gains were attributed to the strength of new titles that made their way to streaming platforms that quarter, including blockbuster films “Moana 2” and “Mufasa: The Lion King.”
Revenue for Disney’s content sales and licensing, which includes theatrical box office, was up 54% to $2.1 billion, reflecting the dearth of significant titles in the prior-year’s quarter rather than a knockout box office performance during the second quarter. Carryover box office revenue from “Moana 2” and “Mufasa: The Lion King” was largely offset by the lackluster performances of the live-action film “Snow White” and “Captain America: Brave New World.”
The company’s linear networks continued to struggle, reporting revenue of $2.4 billion, a 13% decrease from the previous year. Operating income totaled $769 million, up 2% compared to last year.
Disney’s experiences division, which includes parks and cruise lines, reported revenue of $8.9 billion, up 6% compared to the previous year. Operating income was up 9% to $2.5 billion.
The company said the results were driven by growth in domestic theme park attendance and increased guest spending, as well as bookings on its newest cruise ship, the Disney Treasure.
But Disney’s parks in China did not fare as well. The company reported lower attendance and increased costs at its Shanghai Disney Resort and Hong Kong Disneyland Resort, which dragged the international parks results.
Disney’s sports segment, which includes ESPN, reported revenue of $4.5 billion, up 5% from last year. Operating income, however, was $687 million, down 12%, which reflected the higher programming and production costs of airing three additional College Football Playoffs games and an extra NFL game.