Disney beats profit forecasts as theme parks keep visitors coming
NEW YORK, Aug 6 — Disney reported better-than-expected profits Wednesday, citing a strong performance in its theme park business amid lingering worries about macroeconomic weakness.
The entertainment giant’s third-quarter profits came in at US$2.6 billion (RM10.61 billion), about half the level compared with the year-ago period, which was boosted by a large one-time tax benefit.
Revenues rose 6.8 per cent to US$25.2 billion (RM102.82 billion).
Disney pointed to growth across its “Experiences” business, saying Walt Disney World had a “standout quarter” and that forward booking at the US theme park in Florida “remain robust.”
The parks division had been seen as potentially vulnerable due to inflation that has weighed on consumers.
However, the company acknowledged a slowdown in the number of international visitors to its US venues.
Disney scored higher revenues in its entertainment business behind growth in streaming subscriptions.
While the company praised the box office performance of Toy Story 5 and The Devil Wears Prada 2, both Star Wars: The Mandalorian and Grogu underperformed.
However Disney cited upside in theme park attendance and retail products built around the franchises.
In its sports division, Disney saw bigger operating profit decline than it previously forecast due to four-game sweeps in the NBA basketball playoffs.
Results were also dented due to higher sports rights costs.
In parallel with the earnings, Disney announced a new venture with TikTok that will allow fans and creators to use Disney content to make short videos that will be broadcast on both TikTok and Disney’s streaming platform.
Disney said in a statement it will make available Marvel, Star Wars and other content comprising “memorable scenes and moments from Disney movies and shows.”
The agreement will “pilot in the US in the coming months with the intention of other markets to follow.”
Shares of Disney rose 3.8 per cent in pre-market trading.
