Disney reported fiscal second-quarter earnings that exceeded expectations, marking a strong start under new CEO Josh D'Amaro, who took over on March 18. The company reported adjusted earnings per share of $1.57, beating forecasts of $1.51, and revenue grew 7% to $25.2 billion, ahead of expectations for $24.8 billion. Total operating income increased to $4.6 billion from $4.4 billion a year ago. Disney stock rose 8% in premarket trading.
Experiences Division Sees Mixed Results
Disney's experiences division, which includes parks and cruises, reported $9.5 billion in revenue, down from a record $10 billion in the first quarter. The decline was driven by a 1% decrease in U.S. park attendance, though spending per customer rose 5%. The company attributed the drop to softness in international visitor traffic but noted strong current demand and expected attendance to improve in the third quarter.
Sports and Entertainment Units Show Growth
Disney's sports unit reported a 5% drop in operating income due to higher sports rights and marketing costs, though revenue rose 2% to $4.61 billion. The entertainment division, including film and streaming, saw a 10% revenue increase to $11.72 billion, with streaming revenue up 13%.
CEO D'Amaro Outlines Strategy
In his first quarterly report, D'Amaro laid out a long-term strategy focused on investing in intellectual property, reaching more consumers, and using advanced technologies to enhance storytelling and monetization. The company has also faced layoffs and political pressures surrounding late-night TV host Jimmy Kimmel.
Economic Concerns and Consumer Spending
Despite national concerns about discretionary spending and higher gas prices, Disney's theme parks and cruise line business held steady. The company acknowledged global macroeconomic uncertainty but expressed optimism about current demand. Executives noted a pivot to attract local visitors amid lower international visitation.