Disney Springs to Life in Third Quarter: Streaming Success and “Inside Out 2” Magic Bring Profits
Magic is in the air for Disney as it returned to a profitable third quarter, soaring high on the wings of its streaming services and the blockbuster hit “Inside Out 2.” For the first time, Disney’s streaming platforms – including Disney+, Hulu, and ESPN+ – have turned a profit, marking a significant milestone for the entertainment giant.
The star of the show, “Inside Out 2,” not only delighted audiences worldwide but also set the box office ablaze, becoming the highest-grossing animated film of all time. This triumphant follow-up to the 2015 original has breathed new life into Disney’s content sales and licensing segment, contributing to a $1.2 billion operating income for the entertainment division – nearly triple from the previous year.
In the quarter ending June 29, Disney raked in a whopping $2.62 billion, or $1.43 per share, a stark contrast to last year’s loss of $460 million. The overall revenue for the company rose by 4% to $23.16 billion, surpassing Wall Street’s estimates. “Inside Out 2” alone generated significant buzz, driving over 1.3 million new sign-ups to Disney+ and logging more than 100 million views worldwide since its teaser trailer premiered.
Not just confined to the screen, Disney’s ventures in the real world saw a mixed bag of results. The Experiences division, which encompasses theme parks and other attractions, experienced a 3% revenue uptick. However, despite international income rising by 5%, domestic parks faced a 6% dip. The reasons? Inflationary pressures, higher technology spending, and evolving guest offerings have driven costs up.
While there’s been a slowdown in domestic park demand this quarter, Disney anticipates this trend might persist for some time. Fourth-quarter operating income for the Experiences segment is expected to take a hit due to cyclical patterns in China and travel disruptions around Disneyland Paris caused by the Olympics.
Despite these challenges, Disney’s adjusted earnings per share for the full year are projected to grow by 30%. It’s been a magical third quarter, and shareholders and Disney enthusiasts alike are surely eager to see what’s next on the horizon.
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Source: Guardian staff reporter
