Movies

Parks and streaming drive Disney earnings amid economic worries

BBG News

As a die-hard Disney fan, I’ve got to say that my subscription to their streaming service and visits to their theme parks really boosted their earnings in the recent fiscal second quarter! Now, everyone’s keeping their fingers crossed to see if the economic uncertainties will cast a shadow on this entertainment titan’s future.

For the three-month span ending March 29, Burbank Corporation announced a 7% growth in revenue to $23.6 billion compared to the same period the previous year. Their pre-tax earnings amounted to $3.1 billion, marking an increase of $2.4 billion over last year’s figure. The earnings per share stood at $1.81 this time, contrasting with a loss of merely $0.01 in the same quarter last year.

In essence, Bob Iger, Disney’s CEO, expressed continued positivity regarding the company’s trajectory and anticipates a favorable conclusion to the rest of the year.

Last year’s earnings from the company’s entertainment sector – encompassing its studios and online streaming platforms such as Disney+ and Hulu – totaled an impressive $10.7 billion, marking a 9% increase over the previous year. Remarkably, the operating profit for this division surged by 61%, reaching a significant $1.3 billion.

Hollywood Inc.

The upcoming live-action version of ‘Snow White’ by Disney has encountered numerous challenges on its path to release next week, with contentious issues cropping up consistently throughout its production process.

The quarterly earnings revealed an increase in revenue for the company’s streaming services, amounting to $6.1 billion – a 8% rise compared to the previous year. This growth also led to an operating income of $336 million for the quarter, marking a significant improvement from the $47 million recorded last year.

Speaking as a movie buff and streaming enthusiast, I must say that these two popular streaming platforms have been steadily growing their audience. As of the latest reports, they now boast a combined total of over 180 million subscribers – an impressive number indeed! Notably, this figure has risen by a significant 2.5 million from the previous fiscal quarter. This growth is a testament to the quality content and diverse offerings these services provide, making them go-to destinations for many of us seeking our next cinematic adventure.

The increases in performance during that period were largely credited to the strong debuts of fresh movies on streaming services, such as the sequel “Moana 2” and “Mufasa: The Lion King.” (or simply: The growth was mainly due to popular new releases like “Moana 2” and “The Lion King” on streaming platforms that quarter.)

Disney’s earnings from content sales and licensing, including box office revenue, increased by 54% to reach $2.1 billion in the second quarter. This growth is more attributed to a scarcity of major titles during the same period last year rather than exceptional box office successes this quarter. The continued income from “Moana 2” and “Mufasa: The Lion King” was largely balanced out by the underperformance of live-action films such as “Snow White” and “Captain America: Brave New World.”

Last year’s earnings for the company’s linear networks showed a decline, with revenues amounting to approximately $2.4 billion, which is a 13% drop compared to the previous year. On a more positive note, operating income increased slightly by 2%, reaching a total of $769 million.

Hollywood Inc.

In light of a fresh competitor theme park emerging in Orlando, Florida, Disney is now grappling with an economically challenging situation that may lead to reduced visitor turnout.

Disney’s branch handling theme parks and cruises lines brought in a total revenue of $8.9 billion this year, marking a 6% increase from last year. Their operating income also saw a rise, reaching $2.5 billion, which is a 9% improvement over the previous year.

I’m thrilled to share that our success can be attributed to several factors. Domestic attendance at our theme parks has significantly increased, boosting our overall results. Additionally, our guests have been spending more, which is a positive sign. Lastly, bookings for our latest marvel, the Disney Treasure cruise ship, have also contributed to our growth. It’s an exciting time for us!

However, it was observed that Disney’s parks in China didn’t perform as strongly. They reported decreased visitor numbers and rising expenses at their Shanghai Disney Resort and Hong Kong Disneyland Resort. These factors negatively impacted the overall performance of Disney’s international parks.

Disney’s sports division, encompassing ESPN, posted a revenue increase of 5% year-over-year, totaling approximately $4.5 billion. Despite this growth, the operating income dipped by 12%, amounting to $687 million. This decrease was attributed to the increased expenses associated with broadcasting three additional College Football Playoff games and an extra NFL game.

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2025-05-07 14:31

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