Disney posted solid profits and revenue in the second quarter as its domestic theme parks thrived and the company added more than a million subscribers to its streaming service.
The company also boosted its profit expectations for the year.
For the three months ended March 30, Disney earned $3.28 billion, or $1.81 per share. The Burbank, Calif., company lost $20 million, or a penny per share, a year earlier.
Removing one-time charges or benefits, earnings were $1.45 per share, easily topping the $1.18 that Wall Street was expecting, according to a survey by Zacks Investment Research. Revenue rose 7 percent to $23.62 billion, also topping projections.
Revenue for Disney Entertainment, it’s movie studios and streaming, climbed 9 percent, while revenue for the Experiences division, its parks, increased 6 percent.
Disney’s streaming business continues to grow. Its direct-to-consumer business, which includes Disney+ and Hulu, posted quarterly operating income of $336 million compared with $47 million in the prior-year period. Revenue increased 8 percent.
The Disney+ streaming service had a 2 percent increase in paid subscribers domestically, which includes the United States and Canada. There was a 1 percent rise internationally, which excludes Disney+ HotStar.
Total paid subscribers for Disney+ edged up 1 percent in the quarter to surprising 126 million subscribers, from 124.6 million in the first quarter. The Walt Disney Co. previously said that it expected a modest decline in Disney+ subscribers in the second quarter when compared with the first three months of the year.
Disney+ and Hulu subscriptions totaled 180.7 million, up 2.5 million from the first quarter.
The Experiences division, which includes Disney’s six global theme parks, its cruise line, merchandise and videogame licensing, reported operating income rose 9 percent to $2.5 billion. Operating income climbed 13 percent at domestic parks. Operating income dropped 23 percent for international parks and Experiences, due to softness at its Shanghai and Hong Kong theme parks.
Disney also announced that it will build its seventh theme park in Abu Dhabi. The waterfront resort will be located on Yas Island.
The theme park will be built and run by the developer Miral, with Disney licensing its intellectual property for the project and providing development and management services, according to a regulatory filing. Disney, which won’t provide any capital, will earn royalties based on the project’s revenues, and also will earn service fees.
Disney is projecting full-year adjusted earnings of $5.75 per share, which is better than the $5.43 per share that analysts polled by FactSet are expecting.