Disney reported Wednesday better revenues than anticipated in the most recent quarter, atop a first profit in its streaming business, while its theme parks came under pressure.
The company saw revenues of $23.2 billion, beating projections of $23.1 billion, while overall profits reached $2.6 billion.
“This was a strong quarter for Disney, driven by excellent results in our Entertainment segment both at the box office and in DTC (direct-to-consumer),” said Disney chief executive officer Bob Iger in a statement.
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The entertainment behemoth turned a profit on its streaming service, which includes Disney+, Hulu and ESPN+, one quarter ahead of schedule — with an operating income of $47 million.
But the company said its theme parks came under stress in the quarter, with lower operating income.
Disney said it saw “higher costs driven by inflation, increased technology spending and new guest offerings.”
But its financial results were given a boost from “Inside Out 2”, which became the highest-grossing animated film of all time.
This drove strength in areas like content sales and licensing, while Disney+ subscribers grew.
The company said it expects subscribers to “grow modestly” in the upcoming quarter.
AFP