Disney earnings lifted by theme parks, streaming

The Walt Disney Company reported quarterly earnings Monday that showed streaming services gaining momentum and theme parks revenue hitting record levels.

Net profit reached $2.48 billion, down 6 percent year-on-year, according to a statement, with the Experiences division -- Disney's theme parks and resorts -- delivering record quarterly revenue of $10.0 billion.

Domestic parks, including Disney World, showed 8 percent operating income growth for the quarter that ended December 31, with attendance up one percent and per capita spending up 4 percent.

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.

The Entertainment segment overall saw operating income plunge 35 percent to $1.1 billion, as higher programming and marketing costs more than offset revenue 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.

Shares in Disney were up by three percent in pre-session trading.

"We are pleased with the start to our fiscal year, and our achievements reflect the tremendous progress we've made," said CEO Bob Iger 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 be announcing his plans to step down by the end of the year as early this week, according to reports.

He previously stepped down 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.

According to a recent public filing, Disney's board plans to announce its decision this quarter, with internal candidates currently being mentored by Iger and receiving guidance from external coaches.