Copyright 2019 The Associated Press. All rights reserved
FILE – In this Nov. 13, 2019 file photo, a Disney logo forms part of a menu for the Disney Plus movie and entertainment streaming service on a computer screen in Walpole, Mass. /Steven Senne, File)
Disney’s solid third quarter was driven by a $1 billion box office haul from “Toy Story 5” and the strong draw of U.S. theme parks that helped to offset continued weakness from international tourism.
Disney also announced a global short-form content sharing deal with TikTok on Wednesday. The agreement will bring Disney-focused fan-created content from TikTok to the Disney+ app.
Shares climbed more than 3% before the market opened on Wednesday.
The Walt Disney Co. cautioned earlier this year that its theme parks division would likely see modest growth due in part to declining tourism from abroad.
International tourism in the U.S. has waned for a number of reasons after President Donald Trump’s return to the White House, including tariffs, a crackdown on immigrants, and repeated jabs at alliednations.
The Experiences division, which includes Disney’s six global theme parks, its cruise line, merchandise and video game licensing, reported that operating income climbed 20% to $3.02 billion and revenue totaled $9.97 billion. Operating income rose 27% at domestic parks, while operating income declined 13% for international parks and Experiences.
Overall attendance at U.S. parks climbed 3% from a year ago on an increase in attendance from domestic tourists and annual passholders. The company said the performance was also helped by summer promotions and new experiences being offered at the parks.
Disney got a substantial boost from “Toy Story 5” in the quarter, topping $1 billion in global box office. The movie also increased viewings of other Toy Story films on Disney+, and Toy Story merchandise sales helped give the company its strongest quarter of year-over-year growth in Consumer Products revenue in 20 quarters. The company also noted the strong performance of “The Devil Wears Prada 2,” particularly overseas.
Disney earned $2.64 billion, or $1.51 per share, for the three months ended June 27. It earned $5.26 billion, or $2.92 per share, a year ago.
Removing one-time charges and benefits, earnings were $2.06 per share. That easily topped the $1.86 per share that analysts polled by FactSet predicted.
Revenue for the Burbank, California-based company rose 7% to $25.25 billion. Wall Street was looking for $25.39 billion.
Disney said it recorded an approximately $100 million tariff refund after the Supreme Court struck down some of President Donald Trump’s most sweeping levies on trade. The company said that it may receive additional refunds in future quarters, but that the monetary amounts are expected to be insignificant.
Disney is anticipated to have a very strong showing at the box office through the end of the year.
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