On Tuesday, Disney reported fiscal second-quarter results that outperformed analyst expectations by reducing losses in its streaming business and seeing substantial growth in its theme parks and experiences division.
The company’s direct-to-consumer operations, which include Disney+ and Hulu, reported an operating income of $47 million this quarter, marking a significant turnaround from the $587 million loss reported in the same period last year. Despite a combined loss of $18 million across all streaming platforms when including ESPN+, this figure is a stark improvement over the $659 million loss reported during the same period in 2023.
Additionally, Disney+ saw a substantial increase in core subscribers, adding over 6 million users this quarter, bringing the total to 117.6 million globally. Hulu also experienced growth, albeit modest, with a 1% increase bringing its total to 50.2 million subscribers. However, ESPN+ saw a slight decline, with subscribers decreasing by 2% to 24.8 million.
Disney expects full streaming profitability by the end of this year, a goal initially set by the company in 2019.
Disney’s Experiences division, which includes theme parks and consumer products, reported a robust 10% increase in revenue, reaching $8.4 billion. The U.S. parks and experiences sector contributed significantly with a 7% increase in revenue to $5.96 billion. International sales were particularly strong, soaring 29% to $1.52 billion. The remaining revenue in this division came from consumer products.
“When you consider all of our businesses as a whole from Entertainment to Sports to Experiences, it’s clear that no one has what Disney has,” Disney CEO Bob Iger said on the post-earnings call. “The turnaround and growth initiatives we set in motion last year have continued to yield positive results, and we are executing against our ambitious strategic priorities with both speed and determination.”
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