Disney shares jumped in pre-market trading as the firm reported better than expected revenues and profits, thanks in part to growth in its streaming business. Newly CEO Josh D’Amaro described demand at the company’s US amusement parks as “healthy,” but said the company is “mindful of the macroeconomic uncertainty consumers are facing today”.
Profits in Disney’s second quarter ending March 28 were $2.5 billion, down 27 percent from the year-ago level while revenues rose 6.5 percent to $25.12 billion. The results translated into $1.57 per share compared with analyst forecasts for $1.50 per share.
Disney in February named D’Amaro, then the parks chief, as CEO to replace longterm chief Bob Iger. During a conference call with analysts, D’Amaro said his longterm goals include strengthening the links between streaming and experiences.
A standout in the period was Disney’s streaming division, which saw revenues surge 14 percent to $7.8 billion.
Disney also experienced successes movies like “Avatar: Fire and Ash,” “Zootopia 2” and “Hoppers.
“Disney’s parks division scored higher operating profit on increased guest spending at theme parks and on the launch of new cruise ships that sail the Caribbean and Southeast Asia.