US parks and streaming propel Disney earnings above forecasts
By Lisa Richwine and Dawn Chmielewski
LOS ANGELES (Reuters) -Walt Disney's quarterly results topped Wall Street expectations as visitors to its U.S. theme parks increased spending in the first three months of the year and the company saw an unexpected rise in Disney+ streaming customers.
Shares of the company were up 6.4% in premarket trading on Wednesday.
The company is seeking to increase profits from its streaming services as traditional television declines, and to expand its popular theme park and cruise line businesses, all in the midst of a shaky U.S. economy.
"We remain optimistic about the direction of the company and our outlook for the remainder of the fiscal year," Disney CEO Bob Iger said in a statement.
The company posted adjusted earnings per share of $1.45 for January through March, ahead of the $1.20 consensus forecast of analysts polled by LSEG.
Revenue rose 7% to $23.6 billion. Analysts had expected $23.14 billion. Operating income came in at $4.4 billion.
Disney forecast adjusted earnings per share of $5.75 for fiscal 2025, an increase of 16% from the prior fiscal year.
The company reiterated guidance for 6% to 8% operating income growth in the parks-led Experiences division during the fiscal year, and for double-digit percentage operating income growth during that time in the entertainment unit.
Disney said it picked up 1.4 million customers for the Disney+ streaming service during the just-ended quarter. Three months ago, it had warned of a modest decline in Disney+ subscribers following a price increase.
Hulu added 1.1 million customers during the quarter, and operating income at the streaming division rose to $336 million. A year earlier, operating income stood at $47 million.
The entertainment unit reported total operating income of $1.3 billion, a 61% increase from the prior year.
At the Experiences unit, operating income rose 9% to $2.5 billion. Attendance rose at U.S. parks and guests spent more, Disney said. The company also saw an increase in cruise ship bookings with the launch of a new vessel, the Disney Treasure.
Disney stock has fallen 17% this year compared with a 4.7% decline in the S&P 500. The shares have fallen 6.6% since April.
(Reporting by Lisa Richwine; Editing by Muralikumar Anantharaman and Nick Zieminski)
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