Disney profit falls to $2.6bn as parks grow

Disney reported third-quarter profit of $2.6 billion on Wednesday, about half the year-earlier level, while revenue rose 6.8% to $25.2 billion as its theme park and streaming businesses grew.

The company said the year-earlier profit had been lifted by a large one-time tax benefit. Disney shares were up 1.9% shortly after midday.

Disney said Walt Disney World in Florida had a “standout quarter” and that forward bookings there remained robust. Attendance at US parks rose 3%, though the company also acknowledged a slowdown in international visitors to its US venues. Chief Financial Officer Hugh Johnston said demand was strong across domestic parks and cruises, while executives acknowledged weakness at parks in Shanghai and Hong Kong.

In streaming, Disney reported higher entertainment revenue and said customer churn had eased. Chief Executive Josh D'Amaro said the company was exploring a free streaming product for more price-sensitive consumers that could be built around advertising sales.

Disney said sports operating profit fell more than it had previously forecast because of four-game sweeps in the NBA basketball playoffs and higher sports rights costs.

Alongside the results, Disney announced a venture with TikTok that will let fans and creators use Marvel, Star Wars and other Disney content to make short videos for TikTok and Disney's streaming platform. Disney said the pilot would start in the United States in the coming months, with other markets intended to follow.