Disney's 3Q profit climbs on strength of domestic parks, streaming; strikes deal with WWE
It also raised its full-year adjusted earnings forecast on Wednesday and announced a deal with WWE that will see the sports entertainment company's premium live events, like WrestleMania , streamed by ESPN.
The Walt Disney Co. earned $5.26 billion, or $2.92 per share, for the three months ended June 28. A year earlier it earned $2.62 billion, or $1.43 per share.
Excluding certain items, earnings were $1.61 per share. This easily beat the $1.46 per share analysts polled by Zacks Investment Research were looking for.
Revenue for the Burbank, California, company totaled $23.65 billion, falling slightly short of Wall Street's estimate of $23.68 billion.
Disney subsidiary ESPN struck a rights agreement with TKO Group's WWE to become the exclusive U.S. domestic streamer of the sports entertainment company's premium live events starting next year. Aside from gaining access to WrestleMania, ESPN will also air marquee events such as the Royal Rumble, SummerSlam and Survivor Series.
The wrestling events will be available on ESPN's new streaming service, which is set to launch next month, with select ESPN cable channels also airing them.
Financial terms of the agreement were not disclosed, but The Wall Street Journal said that it's a five-year deal worth more than $1.6 billion.
'Sports is the big headline coming out of Disney's latest earnings report, and for good reason. Live sports programming (like WWE Premium Live Events) amasses captive audiences that advertisers crave, and Disney is prioritizing programming with the highest ad revenue potential," Mike Proulx, Forrester vice president, research director, said in an emailed statement.
Last night the NFL announced that it had entered into a nonbinding agreement with ESPN. Under the terms, ESPN will acquire NFL Network, NFL Fantasy and the rights to distribute the RedZone channel to cable and satellite operators and the league will get a 10% equity stake in ESPN.
Revenue for Disney Entertainment, which includes the company's movie studios and streaming service, edged up 1%, while revenue for the Experiences division, its parks, increased 8%.
Disney's direct-to-consumer business, which includes Disney+ and Hulu, posted quarterly operating income of $346 million compared with a loss of $19 million a year ago. Revenue climbed 6%.
The Disney+ streaming service had no change in paid subscribers domestically, which includes the U.S. and Canada. There was a 2% rise internationally, which excludes Disney+ HotStar.
Total paid subscribers for Disney+ came to 128 million subscribers, up from 126 million in the second quarter.
Disney+ and Hulu subscriptions totaled 183 million, up 2.6 million from the second quarter.
In the fourth quarter, Disney anticipates that total Disney+ and Hulu subscriptions will increase more than 10 million compared with the third quarter, with most of the increase coming from Hulu due to the expanded Charter deal, CEO Bob Iger and Chief Financial Officer Hugh Johnston said in prepared remarks.
The company expects a modest increase in the number of Disney+ subscribers in the fourth quarter.
Iger and Johnston also said that Disney will stop reporting the number of paid subscribers for Disney+, Hulu and ESPN+ streaming services because the metric has become less meaningful for evaluating the performance of its businesses. The company will stop reporting the metric for Disney+ and Hulu beginning with fiscal 2026's first quarter and will no longer report the figure for ESPN+ starting with fiscal 2025's fourth quarter.
The Experiences division, which includes Disney's six global theme parks, its cruise line, merchandise and video game licensing, reported operating income increased 13% to $2.52 billion. Operating income climbed 22% at domestic parks. Operating income declined 3% for international parks and Experiences.
Disney announced in May that it will build a seventh theme park in Abu Dhabi.
'We have more expansions underway around the world in our parks and experiences than at any other time in our history,' Iger said in a statement. "With ambitious plans ahead for all our businesses, we're not done building, and we are excited for Disney's future.'
For fiscal 2025, Disney now anticipates adjusted earnings of $5.85 per share. It previously predicted $5.75 per share. Analysts surveyed by FactSet expect full-year earnings of $5.80 per share.
While Disney continues to pull levers to successfully manage all of the different components of its business, it's also working on its search for a successor to Iger, the face of Disney for most of the past two decades.
Disney created a succession planning committee in 2023, but the search began in earnest last year when the company enlisted Morgan Stanley Executive Chairman James Gorman to lead the effort.
Disney does have some time, as Iger agreed to a contract extension that keeps him at the company through the end of 2026.
Disney is looking at internal and external candidates. The internal candidates are widely believed to include the chairman of Disney-owned ESPN, Jimmy Pitaro, Chairperson of Walt Disney Parks and Resorts Josh D'Amaro, Disney Entertainment Co-Chairman Alan Bergman and Disney Entertainment Co-Chairman Dana Walden.
Shares of Disney declined more than 3% in morning trading.
Michelle Chapman, The Associated Press
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
USA Today
17 minutes ago
- USA Today
RGIII lauds Michigan's 2026 WR commit Jayden Pile as hidden gem with big potential
When it comes to the nonspecialists in the 2026 Michigan football recruiting class, the longest-tenured pledge is the lowest rated. Yet, he's getting praise and accolades from a prolific name in college football. Once the Heisman Trophy winner from Baylor, Robert Griffin III went onto the NFL before becoming a broadcaster for college football games, initially with ESPN. Griffin now has a 7-on-7 team, which features Dallas (Tx.) Parish Episcopal three-star wide receiver Jayden Pile, who has been the longest-committed player to the Wolverines 2026 class. Though he didn't get much hype, he's been pivotal in putting together the class, and on the field, despite some not loving his game, RGIII appears to not be among them. On Wednesday, RGIII posted on X (formerly Twitter) about how good he believes Pile is, unabated, noting that the maize and blue faithful will be happy with his ability once he arrives on campus. Michigan has had a knack for finding players who fly under the radar only to thrive once in Ann Arbor. It wouldn't be terribly surprising to see similar results for Pile, who is currently rated the No. 1,142 player in the country and the 173rd-best wide receiver. Even though he's been committed to Michigan since last year, Pile often gets overshadowed by his two wide receiver commit compatriots in four-stars Travis Johnson and Zion Robinson. But as we've seen, often, the Wolverines tend to do more with less -- though they have been in desperate need for top-tier wide receiver talent.
USA Today
17 minutes ago
- USA Today
UFC 319 'Embedded,' No. 4: Lerone Murphy tosses first pitch, DWCS winner arrives
The UFC is back in the "Windy City" for the first time in more than six years for UFC 319, its ninth pay-per-view of the calendar year, and the popular "Embedded" fight week video series is here to document what's happening behind the scenes. UFC 319 (pay-per-view, ESPN, ESPN+) takes place Saturday at United Center in Chicago. In the headliner, middleweight champion Dricus Du Plessis (23-2 MMA, 9-0 UFC) puts his title on the line for the third time when he meets unbeaten – and favored – challenger Khamzat Chimaev (14-0 MMA, 8-0 UFC). In addition, wrestling standout Aaron Pico (13-4 MMA, 0-0 UFC) makes his highly anticipated UFC debut after years in Bellator when he takes on unbeaten featherweight Lerone Murphy (16-0-1 MMA, 8-0-1 UFC) in the co-main event. Plus, the popular Michael Page (23-3 MMA, 2-1 UFC) meets former middleweight title challenger Jared Cannonier (18-8 MMA, 11-8 UFC) and more in the home of the Bulls and Blackhawks. The fourth episode of "Embedded" follows the headliners and featured fighters while they get ready for fight week. Here is the UFC's description of the episode from YouTube: Champ Dricus Du Plessis has a light training session; Lerone Murphy arrives in Chicago for check ins and to throw the first pitch at the White Sox game; Aaron Pico goes through his first fight week duties and begins his weight cut; Khamzat Chimaev is excited for Dana White's Contender Series; Geoff Neal has a striking session; Baysangur Susurkaev arrives in Chicago for fight week after earning a UFC contract less than 24 hours earlier on Dana White's Contender Series. Previous UFC 319 'Embedded' episodes
Buzz Feed
17 minutes ago
- Buzz Feed
Hidden Gems: Misunderstood Movies On Hulu
Whether you were too young to appreciate them, or your opinion suffered from "groupthink" via the Internet, there are so many movies I can name that have been (unfairly) maligned through the years. Okay, maybe they weren't "good" movies, but every film deserves a second chance. Besides, if I can shove popcorn in my face, I am seated. Here are 16 movies currently on Hulu that, despite getting panned by critics and/or audiences, are worth the watch: Robots (2005) This movie is filled with all kinds of unhinged robot puns and in-your-face comedy. The great Mel Brooks voices Bigweld. With a 54% audience score on Rotten Tomatoes, it's proof that some of you can't let kids have a laugh and some it on Hulu. The League of Extraordinary Gentlemen (2003) This movie is a mess, dorky, and I love it. It's a fun thrill ride of a movie, and despite its 16% critics' score on RT, younger me still enjoyed the action and cheesy dialogue. I highly recommend it for comic book it on Hulu. The Day After Tomorrow (2004) Come for the effects, not the story. No matter the school year, I feel like I watched this in every science class whenever my science teacher was out sick. With scores 50% and below from both audiences and critics on RT, I'd argue this is the most memorable disaster movie of the it on Hulu. Father of the Bride: Part II (1995) Who says sequels have to suck? Silly plot and all, the sequel to Steve Martin's Father of the Bride is a lot of fun and laughs. A 54% on RT seems HARSH for any movie starring Martin Short as Franck. Watch it on Hulu. Flight of the Phoenix (2004) I'm sure the original starring the great Jimmy Stewart is lightyears better, but you gotta respect them for trying to take that and make it more of an action flick. For some reason, a twist in this movie still sticks out to me, and it's one of my favorites from a "bad" that alone is worth watching. (Of same twist is from the original, but I thought it was handled well in the remake.)Watch it on Hulu. Alien 3 (1992) Hear me the first two are way better. But there are plenty of great moments in the third installment. When it doesn't rely on CGI xenomorphs, the story is pretty interesting and veers away from the norm Alien franchise fans are used to. The sub-50% scores on RT are credited to the disappointment of the film (and the opening twist), but I'd crank it up by it on Hulu. Lost in Space (1998) The nostalgia hits with this one. That design for Robot, the cast, my childhood movie had everything. Great? Not quite. But it is a fun ride. Sub-30% by both critics and audiences is WILD. What happened to everyone's sense of (silly and campy) adventure?Watch it on Hulu. Prometheus (2012) My cat's favorite movie (it's something with the colors). Again, I think people allow disappointment to drag their ratings down, because 68% RT audience score, although not the worst, is still extremely low for a film of this it on Hulu. A Haunting in Venice (2023) This is a case of overexposure. The Hercule Poirot films are often overlooked, but this one in particular really flew under the radar. It has a 6.5 on IMDb, but is certified fresh on RT. Mixed signals, much? It's a cool mystery thriller movie with plenty of horror it on Hulu. Tammy (2014) Comedy is quite subjective, and if you like Melissa McCarthy, you should probably ignore the ratings. It is a cast made up of mostly women, which spells bad news for any comedy looking for honest critiques, and the reviews def reflect that if you read the downvotes. Watch it on Hulu. The Monkey (2025) So this is new-new, but I was shocked to discover audiences did not love it (56% audience score on RT). It's a dark comedy with plenty of gore and scares. I thought it was hilarious, and although not the most fantastic horror movie I've seen this year, "rotten" feels a bit harsh. Stop disrespecting horror, or we are gonna have to throw hands, it on Hulu. The Proposal (2009) A 45% critics' score on RT. 45%! You all are wild. Any movie starring Betty White deserves at least an 80% rating. I don't make the rules! Also: Sandra Bullock and Ryan Reynolds. You will at least get a few laughs even if your heart is it on Hulu. Presence (2024) Horror fans, beware. This isn't a hardcore ghost flick, but it is an incredibly original idea and shot beautifully. I feel like the poor ratings from audiences are due to expectations (52% audience score on RT), but I think it's a unique experience in "movie-going" even at it on Hulu. The Hitchhikers Guide to the Galaxy (2005) People are afraid to let their "goof flag" fly. Although not a "rotten" score, people really bashed this when it came out because they weren't able to embrace silly sci-fi. Ironic, now so many superhero movies have become full-blown comedies. Wrong place, wrong time...I guess. Watch it on Hulu. I, Robot (2004) Sleep. Sleep. Sleep. Everyone sleeps on this film as far as sci-fi joints are concerned. It's got plenty of memorable dialogue, fun action, and I'd argue it's one of Will Smith's more fun leading man roles (Alan Tudyk is great as always, too). Fans enjoyed it, but the critics' score is a 57% which is a rotten opinion if you ask it on Hulu. Evil Dead (2013) Scary as hell, tough to watch, and a pretty memorable installment to the Evil Dead franchise. Not as popular as Evil Dead Rise, the film still packs a punch that it's RT score of 63% does not do it on Hulu. Is there a movie you think everyone was WAYYY too harsh about? Comment below! Watch all your favorite guilty pleasures on Hulu.
