Disney Reports Strong Quarter Despite International Tourism Decline
Disney's third quarter was driven by a $1 billion box office haul from 'Toy Story 5' and strong US theme park attendance, offsetting weakness from international tourism. The company also announced a deal with TikTok to share fan-created content on Disney+. Shares climbed 4% in early trading.
Key points
- The Walt Disney Co. reported a 20% increase in operating income to $3.02 billion for its Experiences division, which includes six global theme parks, a cruise line, and merchandise licensing.
- Disney's theme parks division saw a 27% increase in operating income at domestic parks, while international parks and experiences saw a 13% decline.
- The company attributed the strong performance to increased attendance from domestic tourists and annual passholders, as well as summer promotions and new experiences.
- Disney also announced a global short-form content sharing deal with TikTok to bring fan-created content to the Disney+ app.
Disney Reports Strong Quarter Despite International Tourism Decline
Disney's third quarter results have been driven by a $1 billion box office haul from 'Toy Story 5' and strong US theme park attendance. The company's Experiences division, which includes six global theme parks, a cruise line, and merchandise licensing, reported a 20% increase in operating income to $3.02 billion.
The strong performance was attributed to increased attendance from domestic tourists and annual passholders, as well as summer promotions and new experiences. However, international tourism continues to decline, with operating income down 13% for international parks and experiences.
In a separate announcement, Disney has partnered with TikTok to share fan-created content on the Disney+ app. The global short-form content sharing deal is expected to bring a new level of engagement to the platform.
As the company looks to the future, Disney's theme parks division is expected to see modest growth, despite the challenges posed by international tourism. With a strong portfolio of movies and a loyal customer base, Disney is well-positioned to navigate the changing landscape of the entertainment industry.
Sources
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