Disney has just released its latest revenue report, revealing an increase of 7% to reach $23.6 billion, up from $22.1 billion last year. Earnings per share also saw a rise, moving from $1.21 to $1.45.
The company is focusing on stabilizing its streaming services while its theme parks continue to perform well. Factors like higher prices and longer stays are contributing positively to the bottom line.
In response to this performance, Disney’s stock jumped 10.4% in morning trading, although overall, the stock is down about 8% this year.
Revenue in the Parks, Experiences and Products sector increased by 10% year-over-year, bringing in $8.4 billion. Operating profit from domestic parks also grew by 12%, amounting to $1.9 billion. Moreover, the Disney Cruise Line has expanded its offerings, with additional features like Genie+ and Lightning Lane increasing guest spending.
Despite concerns about trade wars affecting American brands abroad, Disney’s international parks are thriving, with a 7% rise in operating profits. Notably, Hong Kong Disneyland has turned a profit for the first time in years.
CEO Bob Iger referred to the parks as “the cornerstone of our business,” committing $60 billion for further developments over the next decade. This shows a clear belief that real-world experiences will continue to generate substantial revenue.
So far, this strategy seems to be paying off. Even with some economic softening, guests appear unfazed by price hikes.
The recent film “Mufasa: The Lion King” has quietly garnered over $720 million globally since its holiday release. Iger remarked that Marvel’s “Thunderbolt” has become the top film worldwide.
The upcoming 2025 movie lineup resembles a mashup of Disney’s greatest hits, featuring sequels and new stories like “Freaky Friday,” “Zootopia 2,” “Elio,” “Avatar: Fire and Ash,” and “Fantastic Four: Firsting First Steps.” It’s perhaps less surprising that “Moana 2” has emerged as one of the top three films of 2024, earning $1 billion and achieving remarkable streaming figures on Disney+ since March. The original “Moana” remains the platform’s most streamed movie, racking up 1.4 billion hours of watch time. Similar to other Disney properties, these franchises generate revenue by integrating characters into various experiences across attractions, shows, parks, and cruises.
All this activity has led to steady growth for Disney+. The platform gained an additional 1.4 million subscribers in the second quarter, bringing the total to 126 million. Executives have acknowledged that strong content, particularly “Moana 2,” “Mufasa,” and “Daredevil: Reborn,” significantly contributed to the increase in subscription and streaming revenue.
