Walt Disney Co. has finally achieved a historic milestone in its streaming adventure, making a profit in the third quarter for the first time ever! Not only did Disney+ and Hulu perform spectacularly, but ESPN+ also contributed to this streaming triumph. This is quite a turnaround from the previous year, where the company’s streaming ventures faced a hefty loss of $505 million. With a 15% revenue hike hitting $5.81 billion, it seems like viewers just can’t get enough of Disney’s captivating content.
Further adding to the magic, Disney’s theatrical releases brought crowds flocking to cinemas. The heartwarming success of “Inside Out 2” set the box office alight, contributing to the company’s entertainment segment, which saw its operating income nearly triple to $1.2 billion. The upcoming “Deadpool & Wolverine” is expected to keep this fiery momentum blazing!
But it’s not all pixie dust and fairy tales for the House of Mouse. Domestic theme parks struggled, with operating income from U.S. experiences dipping 6%. Inflation and tech investments pressured margins, while lower-income guests felt the squeeze, and high-income visitors preferred globetrotting adventures. Despite this, Disneyland Paris celebrated a 2% growth in international parks’ income, helped by the magic of “Inside Out 2,” already the highest-grossing animated film globally!
The streak doesn’t stop there! Disney also announced upcoming price hikes for Disney+, Hulu, and ESPN+, taking effect from October 17. Disney+ and Hulu will each see a $2 boost, costing $9.99 monthly with ads. The ad-free versions will respectively hit $15.99 and $18.99. ESPN+, meanwhile, increases to $11.99 monthly. As CEO Bob Iger works to keep Disney afloat in rocky waters, these adjustments seem designed to sustain the magic moving forward.
Financially, the company shone bright this quarter. Disney’s $2.62 billion earnings, translating to $1.43 per share, marked a significant leap from a $460 million loss in the same period last year. The Wall Street darlings, who had laid eyes on a conservative $1.20 gain, were pleasantly wowed by an actual $1.39 earnings per share. Revenue also rose to $23.16 billion, surpassing the anticipated $22.91 billion.
The cherry on top was ESPN’s strong third quarter, with significant primetime viewership driven by NBA finals, WNBA draft, and NHL playoffs. This successful streak slightly mitigated the lingering concerns about domestic park demand. Nonetheless, the next few quarters might still spell moderation. As Disney weaves its narrative digitally and on-screen, the theme park chapter faces an interesting twist. What do you make of these developments at Disney? Share your thoughts and let’s chat below!
