*
Disney+ gains 1.4 million users, taking total to 126
million
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Domestic parks & experience operating income up 13%
*
Shares rise 5.8% in premarket trading
(Updates share move in paragraph 2, adds bullet points)
By Lisa Richwine and Dawn Chmielewski
LOS ANGELES, May 7 (Reuters) - Walt Disney's ( DIS )
quarterly results topped Wall Street expectations on Wednesday
as visitors to its U.S. theme parks increased spending in the
first three months of the year and the company saw an unexpected
rise in Disney+ streaming customers.
Shares of the company were up 5.8% in premarket trading on
Wednesday.
The company is seeking to increase profits from its
streaming services as traditional television declines, and to
expand its popular theme park and cruise line businesses, all in
the midst of a shaky U.S. economy.
"We remain optimistic about the direction of the company and
our outlook for the remainder of the fiscal year," Disney ( DIS ) CEO
Bob Iger said in a statement.
The company posted adjusted earnings per share of $1.45 for
January through March, ahead of the $1.20 consensus forecast of
analysts polled by LSEG.
Revenue rose 7% to $23.6 billion. Analysts had expected
$23.14 billion. Operating income came in at $4.4 billion.
Disney ( DIS ) forecast adjusted earnings per share of $5.75 for
fiscal 2025, an increase of 16% from the prior fiscal year.
The company reiterated guidance for 6% to 8% operating
income growth in the parks-led Experiences division during the
fiscal year, and for double-digit percentage operating income
growth during that time in the entertainment unit.
Disney ( DIS ) said it picked up 1.4 million customers for the
Disney+ streaming service during the just-ended quarter. Three
months ago, it had warned of a modest decline in Disney+
subscribers following a price increase.
Its Hulu service added 1.1 million customers during the
quarter, and operating income at the streaming division rose to
$336 million. A year earlier, operating income stood at $47
million.
The entertainment unit reported total operating income of
$1.3 billion, a 61% increase from the prior year.
At the Experiences unit, operating income rose 9% to $2.5
billion. Attendance rose at U.S. parks and guests spent more,
Disney ( DIS ) said. The company also saw an increase in cruise ship
bookings with the launch of a new vessel, the Disney Treasure.
Disney ( DIS ) stock has fallen 17% this year compared with a 4.7%
decline in the S&P 500. The shares have fallen 6.6% since
April.