In a reversal, Disney's media assets are starting to generate more excitement than its parks
Here’s a surprise: Disney’s media business isn’t weighing down the company anymore.
Here’s a surprise: Disney’s media business isn’t weighing down the company anymore.
The primary Disney investor narrative since 2022 has been how streaming losses, combined with a declining traditional pay TV business and a string of box office failures, have been anchoring surging sales and profits at the company’s theme parks and resorts. The result has been a company whose shares have fallen about 24% in the past two years, while the S&P 500 has gained 28% in the same period.
The company’s second-quarter results suggest a shift is happening. Disney’s combined streaming businesses — Disney+, Hulu and ESPN+ — turned a quarterly profit for the first time ever, making $47 million. That’s a significant improvement from losing $512 million in the same quarter a year ago.
Disney’s theatrical unit is also on a hot streak. “Inside Out 2” became the highest-grossing animated film of all time in recent weeks. “Deadpool & Wolverine” has taken in $824 million after two weeks of global release. Disney has become the first studio in 2024 to top $3 billion in worldwide ticket sales.
Meanwhile, Disney saw a “moderation of consumer demand towards the end of [fiscal] Q3 that exceeded our previous expectations” for its theme parks division. That caused shares to slump about 3% in early trading.
Rating: 5