The Walt Disney Company delivered stronger-than-expected earnings for its fiscal third quarter, driven by gains in streaming and increased spending at U.S. theme parks, prompting the entertainment giant to raise its full-year earnings outlook.
Disney reported adjusted earnings per share of $1.61 for the April–June period, a 16% increase from the same quarter last year and well above analysts' forecast of $1.47, according to LSEG. The company also raised its full-year EPS guidance to $5.85, up from a previous estimate of $5.75, News.Az reports, citing Reuters.
The upbeat report comes just a day after Disney unveiled a landmark deal with the National Football League, which will take a 10% equity stake in ESPN. While financial terms were not disclosed, the move signals a significant shift as Disney aims to boost its streaming sports portfolio amid the decline of traditional television.
CEO Bob Iger emphasized the company’s strategic evolution, pointing to the August 21 launch of the standalone ESPN app and the upcoming integration of Hulu into Disney+. He described the combined offering as “a truly differentiated streaming proposition” that will strengthen Disney’s position in the digital media landscape.
Looking ahead, Disney expects to add 10 million new subscribers to Disney+ and Hulu in the current quarter, fueled largely by its growing partnership with cable operator Charter.
Despite the streaming gains, operating income in Disney’s entertainment division fell 15% to $1 billion, attributed to weaker performance from traditional TV networks and the absence of a breakout film like last year's Inside Out 2.
In contrast, the company’s parks division reported a 13% increase in operating income, reaching $2.5 billion. Domestic parks led the growth with a 22% rise in profits, including record quarterly revenue at Walt Disney World in Orlando—even as competition intensifies with the opening of Universal's Epic Universe.
Meanwhile, Disney’s sports division saw operating income climb 29% to $1 billion. Domestic ESPN profits dipped 3% due to higher programming and production costs, including rate hikes for NBA and college sports coverage.
“With ambitious plans ahead for all our businesses, we’re not done building, and we are excited for Disney’s future,” Iger said in a statement.
