Disney Q3 results beat expectations as films and US parks drive growth
Disney reported a strong third-quarter performance, supported by films including “Toy Story 5” and growth at US theme parks. The company also announced a TikTok content partnership, while international tourism weakness continued to affect overseas Experiences operations
Washington: Disney managed a solid showing in its third quarter, bolstered by movies like “Toy Story 5” and ongoing strength from its US theme parks that made up for 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.
The Walt Disney Co cautioned earlier this year that its theme parks division would likely 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 that operating income climbed 20 per cent to USD 3.02 billion and revenue totaled USD 9.97 billion. Operating income rose 27 per cent at domestic parks, while operating income declined 13 per cent for international parks and Experiences.
Disney earned USD 2.64 billion, or USD 1.51 per share, for the three months ended June 27. It earned USD 5.26 billion, or USD 2.92 per share, a year ago.
Removing certain items, earnings were USD 2.06 per share. That easily topped the USD 1.86 per share that analysts polled by FactSet predicted.
Revenue for the Burbank, California-based company rose 7 per cent to USD 25.25 billion. Wall Street was looking for USD 25.39 billion.
Disney is anticipated to have a very strong showing at the box office through the end of the year.