Disney managed a solid showing in its third quarter, bolstered by movies like “Toy Story 5” and ongoing strength from its U.S. theme parks that helped to offset continued weakness from international tourism.
Disney also announced a global short-form content sharing deal with TikTok on Wednesday. The agreement will bring Disney-focused fan-created content from TikTok to the Disney+ app.
Shares climbed more than 3% before the market open on Wednesday.
The Walt Disney Co. cautioned earlier this year that its theme parks division would likely see modest growth due in part to declining tourism from abroad.
International tourism in the U.S. has waned for a number of reasons after President Donald Trump’s return to the White House, including tariffs, a crackdown on immigrants, and repeated jabs at alliednations.
For the third quarter, the Experiences division, which includes Disney’s six global theme parks, its cruise line, merchandise and video game licensing, reported that operating income climbed 20% to $3.02 billion and revenue totaled $9.97 billion. Operating income rose 27% at domestic parks, while operating income declined 13% for international parks and Experiences.
Overall attendance at U.S. parks climbed 3% from a year ago on an increase in attendance from domestic tourists and annual passholders. The company said the performance was also helped by summer promotions and new experiences being offered at the parks.
Disney earned $2.64 billion, or $1.51 per share, for the three months ended June 27. It earned $5.26 billion, or $2.92 per share, a year ago.
Removing certain items, earnings were $2.06 per share. That easily topped the $1.86 per share that analysts polled by FactSet predicted.
Revenue for the Burbank, California-based company rose 7% to $25.25 billion. Wall Street was looking for $25.39 billion.
Disney is anticipated to have a very strong showing at the box office through the end of the year.
