3 weeks ago
Disney Beats Profit Estimates, Announces TikTok Partnership as Shares Rise
Disney is a big company that makes movies, cartoons, and runs theme parks.
Every few months, it tells everyone how much money it made.
This time, Disney made more money than many people expected it would.
That was because many families still wanted to visit its theme parks in America.
Its streaming service also kept more of its customers than before.
Disney said it will work together with TikTok, so people can make short videos using clips from Disney movies.
Good news like this made Disney's stock price go up a little.
But Disney did not make as much money as it did last year, mostly because last year's numbers got a special one-time tax boost.
Also, fewer people visited its parks in the Asian cities of Shanghai and Hong Kong.
Even so, Disney says it still plans to build a new theme park in Abu Dhabi.
Disney beat profit estimates for its fiscal third quarter, reporting net profit of $2.6 billion, about half of last year's level which included a one-time tax benefit.
Revenue grew 6.8% year over year to $25.2 billion, slightly below Wall Street expectations.
Strong U.S. theme park demand, led by Walt Disney World, and improved streaming subscriber retention drove results, while Shanghai and Hong Kong parks saw softer demand.
Disney announced a partnership with TikTok allowing fans and creators to make short-form videos from Disney's library, available on TikTok and Disney's streaming platform.
Disney shares rose 3.65% to $101.76 after the earnings beat.
- Who
- Walt Disney, with CEO Josh D'Amaro and CFO Hugh Johnston discussing results for its theme park, streaming, film, and sports divisions.
- What
- Beat quarterly profit estimates on strong theme park and streaming performance and announced a TikTok partnership for short-form videos from Disney's library.
- Where
- United States, including a standout quarter at Walt Disney World in Florida; softer demand was noted in Shanghai and Hong Kong, and a new theme park is planned in Abu Dhabi.
- When
- Wednesday, when the company reported its fiscal third-quarter earnings and shares were quoted at 1:42 p.m. EDT.
- Why
- Profits were driven by resilient U.S. park attendance, improved streaming subscriber retention, and box office hits, despite headwinds from higher fuel prices and sports costs.
Key facts
- Company
- Walt Disney
- Quarter
- Fiscal third quarter
- Net profit
- $2.6 billion, about half of the prior-year level which included a one-time tax benefit
- Revenue
- $25.2 billion, up 6.8% year over year
- Share price
- $101.76, up 3.65%
- U.S. park attendance
- Up 3% during the quarter
- TikTok partnership
- Fans and creators can make short-form videos using Disney scenes and clips, available on TikTok and Disney's streaming platform
- Leadership
- CEO Josh D'Amaro; CFO Hugh Johnston
Quotes
Hugh Johnston
Chief Financial Officer of Walt Disney Co.
“Demand is strong across domestic parks and cruises.”
livemint.com
Josh D’Amaro
Chief Executive Officer of Walt Disney Co.
“We are exploring a free streaming product for consumers, viewing the option as "way to expand our reach to a customer segment that's more price sensitive."”
livemint.com









