Disney Theme Parks Drive Big Profits Alongside Streaming Gains
Disney’s fiscal second-quarter results have exceeded Wall Street’s expectations, thanks to a solid recovery in its domestic parks business and a notable boost from its streaming services. The company has raised its full-year profit forecast, now projecting earnings of $5.75 per share for fiscal 2025, marking a 16% increase from 2024 and double the previous estimate for single-digit growth. This strong performance has caused Disney stock to surge, reflecting investor confidence in the company’s outlook. (ALSO READ: Pirates of the Caribbean and Haunted Mansion – Disney’s 2025 Not-So-Scary Party Details)
Shares of Disney surged nearly 11% following the announcement, reflecting strong investor confidence. In addition to the earnings update, the company revealed plans to build a new theme park and resort in Abu Dhabi, United Arab Emirates—the company’s first expansion into the Middle East and its seventh global resort.
A Strategic Expansion: Disney’s New UAE Resort
The new resort, set to be developed in partnership with Miral, an Emirati real estate and tourism firm, will be a groundbreaking addition to Disney’s portfolio. CEO Bob Iger described the project as “authentically Disney and distinctly Emirati,” emphasizing its cultural significance. The park aims to serve as a “destination oasis” for visitors from the Middle East, Africa, India, Asia, and Europe, further cementing the company’s global presence.
Strong Streaming Performance Drives Growth
The company’s direct-to-consumer (DTC) streaming segment, including Disney+ and Hulu, posted impressive growth, adding 1.4 million subscribers—surpassing analysts’ expectations of a 1.25 million loss. Despite earlier subscriber churn due to price hikes and password sharing crackdowns, the streaming division was profitable, earning $336 million for the quarter, a significant jump from $47 million last year.
This marks the fourth consecutive quarter of profitability for the company’s streaming business, a crucial achievement as the company aims to reach a streaming profit target of $875 million in fiscal 2025.
Navigating Uncertainty Amid Tariff Concerns
While the earnings report was positive, the global entertainment brand acknowledged the challenges posed by the ongoing uncertainty in global markets, particularly with shifting tariff policies under President Trump. The company emphasized its continuous monitoring of macroeconomic conditions, signaling awareness of potential risks in the coming months.
With a strong Q2 performance and strategic expansions like the Abu Dhabi Park, the company is poised for continued growth despite a shifting global economic landscape.
Stay tuned for more updates on Disney’s financial moves and upcoming projects.