Disney Raises Annual Profit Forecast as Theme Parks and Streaming Power Growth

Walt Disney has lifted its profit outlook for the year after robust results from its theme parks and a strong performance in its streaming operations. The entertainment conglomerate is actively pursuing a strategy to dial down its reliance on traditional television, responding to wider industry shifts towards digital and direct-to-consumer experiences.

The most recent quarter saw Disney announce expectations of adding 10 million new Disney Plus and Hulu subscribers, predominantly as a result of an expanded deal with the cable operator Charter. In the third quarter, the streaming businesses secured a gain of 2.6 million subscriptions, taking the total Disney Plus and Hulu subscriber base to 183 million. These additions powered a 6 per cent rise in revenue within the direct-to-consumer division, which posted an operating profit of $346 million— a marked improvement on the $19 million loss recorded a year prior.

Disney is projecting $1.3 billion in operating profit from its streaming business for the fiscal year ending in September, surpassing its earlier guidance of $1 billion. The company’s parks, experiences, and products division also recorded a robust quarter, with operating profit climbing by 13 per cent to $2.5 billion for the three months ending 28 June. Domestic parks led the way with a profit jump of 22 per cent, thanks to record spending by visitors at Walt Disney World in Orlando despite increased competition from Universal’s newly launched Epic Universe.

Operating income for the parks division for the full year is expected to grow by 8 per cent, which represents the upper end of management’s previous forecasts. Meanwhile, the entertainment division saw a 15 per cent drop in operating profit to $1 billion, with Disney attributing this to lower results from its television networks and a challenging comparison with the prior year’s blockbuster performance from the film Inside Out 2.

The company’s sports segment recorded a strong advance, with operating profit up 29 per cent to $1 billion. While domestic ESPN profit fell 3 per cent due to higher programming and production costs, this was more than offset by the company’s ongoing investments in sports and streaming. Disney has recently signed two major partnerships: an NFL deal that sees the league take a 10 per cent stake in the ESPN sports network, and an arrangement with WWE bringing exclusive rights for events such as WrestleMania and Royal Rumble to a new ESPN streaming service, which will debut on 21 August at a price point of $29.99 per month.

Chief executive Bob Iger reiterated Disney’s commitment to innovation with significant developments planned across all divisions. He highlighted the integration of Hulu content into Disney Plus and the launch of the new ESPN streaming platform as setting the stage for what he described as a truly unique streaming offering. The group’s net profit more than doubled to $5.9 billion, compared with $2.8 billion a year earlier, as quarterly revenues moved 2 per cent higher to $23.7 billion.

Despite the results, Disney shares fell by 2.7 per cent to $115.17 in New York. The company continues to evolve, positioning itself to capture growth from digital consumer behaviour and a changing global entertainment landscape.