New York (AFP) – The Walt Disney Company on Monday reported quarterly earnings showing that streaming services gained momentum and theme-park revenue hit record levels, but the company warned of a possible slowdown in the United States. Net profit reached $2.48 billion, down 6 percent year-over-year, according to a statement, with the Experiences division — Disney’s theme parks and resorts — delivering record quarterly revenue of $10.0 billion.
US parks, including Disney World, showed 8 percent operating income growth for the quarter that ended December 31, with attendance up 1 percent and per capita spending up 4 percent. Cruises performed strongly, thanks to an increase in passenger numbers and the addition of a new ship, the Disney Destiny, the seventh in the group’s fleet. Disney nevertheless warned that operating income for the parks and cruises division could see “modest” growth during the current quarter, due in particular to unfavorable factors, including headwinds in demand from foreign tourists at US parks.
The number of foreign visitors to the United States fell by 2.5 percent in 2025 compared to the previous year, according to the US Department of Commerce. The country has seen eight consecutive months of decline. After an initial surge, the stock plunged and was down about 5 percent on Wall Street. Operating income for the entertainment giant’s Disney+ and Hulu streaming services grew 72 percent from the same quarter a year ago to $450 million, well above expectations.
Like Netflix, Disney no longer gives subscriber numbers for its streaming platforms, but the boost in revenue is largely attributed to a hike in prices. The Entertainment segment overall saw operating income plunge 35 percent to $1.1 billion, as higher programming and marketing costs offset the gains from blockbuster theatrical releases including “Zootopia 2” and “Avatar: Fire and Ash.” “Zootopia 2” notably became the highest-grossing foreign film of all time in China, where the franchise is an important driver of attendance at Shanghai Disneyland, the company said.
“We are pleased with the start to our fiscal year, and our achievements reflect the tremendous progress we’ve made,” CEO Bob Iger said in the statement. Iger said the company had high hopes for its slate of upcoming movies, including a sequel to “The Devil Wears Prada,” “The Mandalorian and Grogu,” “Toy Story 5,” and a live-action “Moana.”
Iger is expected to announce his plans to step aside as CEO by the end of the year as early as this week, according to reports. He previously resigned as Disney CEO in February 2020 after 15 years, handing control to Bob Chapek. But their clashes during the Covid-19 pandemic led to Chapek’s ouster in November 2022 and Iger’s return as CEO. In a recent public filing, Disney said internal candidates are currently being mentored by Iger and receiving guidance from external coaches. The head of the highly profitable parks and cruises unit, Josh D’Amaro, is a leading candidate to replace Iger.
© 2024 AFP
