Disney reported better-than-expected profits Wednesday, citing a strong performance in its theme park business amid lingering worries about macroeconomic weakness.<\/p>\n\n\n\n
While Disney executives acknowledged weakness at theme parks in Shanghai and Hong Kong, the company\u2019s press release described Walt Disney World in Florida as having enjoyed a \u201cstandout quarter,\u201d adding that forward bookings at the US theme park \u201cremain robust.\u201d<\/p>\n\n\n\n
Disney also reported solid results in its streaming business, where it pointed to less \u201cchurn\u201d from customers coming and going. The company has begun weighing a complementary offering that could be built around advertising sales.<\/p>\n\n\n\n
Overall profits were above analyst expectations, lifting shares.<\/p>\n\n\n\n
Disney\u2019s third-quarter profits came in at $2.6 billion, about half the level compared with the year-ago period, which was boosted by a large one-time tax benefit.<\/p>\n\n\n\n
Revenues rose 6.8 percent to $25.2 billion, a bit under analyst forecasts.<\/p>\n\n\n\n
\u201cDemand is strong across domestic parks and cruises,\u201d said Chief Financial Officer Hugh Johnston. <\/p>\n\n\n\n
Johnston said the company is \u201cnot immune\u201d to effects from higher fuel prices, pointing to a \u201cweaker consumer\u201d at Asian parks. He reiterated that the ongoing US-Iran war in the Middle East had no impact on plans for a major new park in Abu Dhabi.<\/p>\n\n\n\n
While attendance at US parks rose three percent, Disney acknowledged a slowdown in the number of international visitors to its US venues.<\/p>\n\n\n\n
\u2013 TikTok tie-up \u2013<\/p>\n\n\n\n
Disney scored higher revenues in its entertainment business behind growth in streaming subscriptions.<\/p>\n\n\n\n
Chief Executive Josh D\u2019Amaro said on an earnings conference call that the company was exploring a free streaming product for consumers, viewing the option as \u201cway to expand our reach to a customer segment that\u2019s more price sensitive.\u201d<\/p>\n\n\n\n
While Netflix does not offer a free service, the streaming giant in October 2022 began offering a lower-priced ad-supported option, later attributing the offering with a boost in subscription counts.<\/p>\n\n\n\n
While the company praised the box office performance of \u201cToy Story 5\u201d and \u201cThe Devil Wears Prada 2,\u201d it saw \u201cStar Wars: The Mandalorian and Grogu\u201d underperform.<\/p>\n\n\n\n
However Disney cited upside in theme park attendance and retail products built around the franchises.<\/p>\n\n\n\n
In its sports division, Disney saw a 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.<\/p>\n\n\n\n
A note from Briefing.com said the results showed improved profitability in its streaming business, concluding that Disney\u2019s \u201cmajor earnings drivers are improving simultaneously.\u201d<\/p>\n\n\n\n
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\u2019s streaming platform.<\/p>\n\n\n\n
Disney said in a statement it will make available Marvel, Star Wars and other content comprising \u201cmemorable scenes and moments from Disney movies and shows.\u201d<\/p>\n\n\n\n
The agreement will \u201cpilot in the US in the coming months with the intention of other markets to follow.\u201d<\/p>\n\n\n\n
Shares of Disney rose 1.9 percent shortly after midday.<\/p>\n\n\n\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
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