Disney profit falls to $2.6bn despite park strength

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

The entertainment company said revenue increased 6.8% to $25.2 billion. Its earlier earnings figure was equivalent to $2.06 a share.

Disney pointed to growth across its Experiences business, saying Walt Disney World in Florida had a “standout quarter” and that forward bookings at the US theme park remained robust. The company also acknowledged a slowdown in international visitors to its US venues.

Entertainment revenue rose with growth in streaming subscriptions. Disney praised the box office performance of “Toy Story 5” and “The Devil Wears Prada 2”, while saying other releases underperformed. It cited gains in theme park attendance and retail products linked to its franchises.

In sports, Disney said 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 Disney content to make short videos for TikTok and Disney's streaming platform. Disney said the project would use Marvel, Star Wars and other content and would pilot in the United States in the coming months, with other markets intended to follow.

Disney shares rose 3.8% in pre-market trading.