Streaming, Parks Drive Disney Earnings

Walt Disney Co.’s experiences division, which includes its theme parks and cruise line, reported solid growth in its fiscal second quarter despite broader concerns about discretionary spending and rising gas prices.

The division generated $9.5 billion in revenue, up 7% from a year earlier, with operating income rising 5% to $2.6 billion for the quarter ended March 28. 

Domestic parks and experiences drove much of the gain, posting $6.9 billion in revenue, a 6% increase, thanks to higher guest spending. The cruise business benefited from added capacity with the launch of two new ships.

Overall company results showed continued momentum. 

Scrooge McDuck

Disney reported total revenue of $25.2 billion, a 7% increase from the prior-year quarter. Operating income rose 4% to $4.6 billion, income before taxes climbed 9% to $3.4 billion, and adjusted earnings per share reached $1.57, up from $1.45 a year ago.

The entertainment segment led growth, with revenue climbing 10% to $11.7 billion. 

Streaming services (Disney+ and Hulu) delivered $5.5 billion in revenue, up 13%, fueled by subscriber growth, higher subscription prices, and increased advertising. Streaming operating income surged 88% to $582 million. 

Strong theatrical performances from “Avatar: Fire and Ash,” “Zootopia 2,” and “Hoppers” also boosted results.

Disney’s sports segment, including ESPN, posted more modest gains with revenue of $4.6 billion, up 2%. However, operating income fell 5% to $652 million due to higher sports rights costs and the absence of UFC pay-per-view revenue from the prior year.