Disney posts higher second-quarter earnings and revenue thanks to strong theme parks business

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For the three months ended April 1, Disney earned $1.27 billion or 69 cents per share. That compares with $470 million, or 26 cents per share, a year ago.

After adjusting for one-time items, Disney earns 93 cents per share, matching analysts’ expectations according to a poll by FactSet.

Revenue rose 13% to $21.82 billion. This also met Wall Street’s forecast of $21.8 billion.

Sales at its parks, experiences and products segment rose 17% in the quarter. Revenue for the segment that includes Disney’s movie business increased 3%.

In Disney’s fiscal first quarter, sales at its parks, experiences and products division grew 21%, while revenue for the unit housing its movie business increased by 1%.

The company lost 4 million subscribers at its Disney+ streaming service, ending the second quarter with 157.8 million paying subscribers.

Hulu subscribers were just about flat at 48.2 million. Disney said it plans to combine the two services into one app.

Disney’s theme parks are widely viewed by industry experts as a critical component of the Burbank, California-based company’s business. To that end, Iger has prioritized reconnecting with the Disney theme park die-hards and restoring their faith in the brand.

Shortly after Iger’s return, changes were rolling out at US parks. And on Monday Disney announced that some big updates are in store for Walt Disney World next year, including the return of Disney dining plans and offering some days that annual passholders and Disney cast members can visit Walt Disney World theme parks without needing a park reservation.

Disney’s stock fell $4.69, or 4.6%, to $96.45 in after-hours trading.

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