- Disney+ gains 1.4 million users, taking total to 126 million
- Domestic parks & experience operating income up 13%
- Plans new theme park in Abu Dhabi
- Shares rise 5.8% in premarket trading
LOS ANGELES, May 7 (Reuters) - In an earnings quarter teeming with uncertainty around tariffs, Walt Disney's quarterly results are looking like the happiest place on earth.
The media giant exceeded expectations in its most recent quarter, bolstered by an unexpected boost in its Disney+ streaming business and strong results from its theme parks that suggested consumer resilience despite a turbulent global economic environment.
"Despite questions around any macroeconomic uncertainty or the impact of competition, I'm encouraged by the strength and resilience of our business," Disney CEO Bob Iger said.
The entertainment giant released its earnings report shortly before announcing plans for a new theme park in United Arab Emirates capital Abu Dhabi. Shares of the company rose 8% in premarket trading as it posted adjusted earnings per share of $1.45 for the January-to-March quarter, beating the $1.20 analysts consensus as polled by LSEG.
“At a time when so many businesses in the US are worried about the potential impact of tariffs on consumer spending, on household budgets, Disney is feeling confident," said Danni Hewson, head of financial analysis at AJ Bell.
The company - unlike many other blue-chip companies - voiced a lofty outlook for the rest of the year. Disney is leaning on its streaming business to grow profits as traditional television declines and to expand its popular theme parks and cruise line in the midst of a shaky U.S. economy.
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.
Its Hulu service 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, Nick Zieminski and Chizu Nomiyama
Source: Reuters