Disney’s posted solid profits and revenue in the second quarter as its domestic theme parks thrived and the company added well over a million subscribers to its streaming service.
For the three months ended March 30, Disney earned $3.28 billion, or $1.81 per share. The Burbank, California, company lost $20 million, or a penny per share, a year earlier.
Removing one time charges or benefits, earnings were $1.45 per share, easily topping the $1.18 that Wall Street was expecting, according to a survey by Zacks Investment Research.
Revenue rose 7% to $23.62 billion, also topping projections.
Revenue in Disney’s Entertainment segment climbed 9%, while revenue for the Experiences division increased 6%.
Disney’s direct-to-consumer business, which includes Disney+ and Hulu, posted quarterly operating income of $336 million compared with $47 million in the prior-year period. Revenue increased 8%.
The Disney+ streaming service had a 2% increase in paid subscribers domestically, which includes the U.S. and Canada. There was a 1% rise internationally, which excludes Disney+ HotStar. Total paid subscribers for Disney+ edged up 1% in the quarter to 126 million subscribers from 124.6 million in the first quarter.
Disney+ and Hulu subscriptions totaled 180.7 million, up 2.5 million from the first quarter.
The Walt Disney Co. previously said that it expected a modest decline in Disney+ subscribers in the second quarter when compared with the first quarter.
The Experiences division, which includes six global theme parks, its cruise line, merchandise and videogame licensing, reported operating income rose 9% to $2.5 billion. Operating income climbed 13% at domestic parks. Operating income dropped 23% for international parks and Experiences.
Disney is projecting full-year adjusted earnings of $5.75 per share. The company’s previous guidance was for high-single digit adjusted earnings per share growth for .
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