Key facts
- Disney reported $25.2 billion in revenue for the June quarter.
- Disney's domestic parks and cruises revenue increased 11% in the latest quarter.
- Disney is selling its 50% stake in A+E Global Media to Hearst for $1.2 billion.
- Hearst will gain full ownership of A+E Global Media.
- Universal Destinations & Experiences reported an 18.7% revenue jump.
- Six Flags and United Parks & Resorts experienced revenue declines.
- Mattel reported a second-quarter adjusted profit of 1 cent per share.
- Mattel's net sales reached $1.12 billion.
- 'Toy Story 5' success is attributed to merchandise, streaming, and parks.
- Disney beat earnings per share estimates for the June quarter.
Disney reported $25.2 billion in revenue for the June quarter, falling short of forecasts but surpassing earnings per share estimates. The company credits the success of 'Toy Story 5' for boosting merchandise sales, streaming engagement, and theme park attendance. Disney's domestic parks and cruises segment saw an 11% revenue increase. This growth in parks contrasts with declines experienced by Six Flags and United Parks & Resorts, while Universal Destinations & Experiences reported an 18.7% revenue jump, primarily due to the opening of Epic Universe.
In a significant strategic maneuver, Disney is divesting its 50% stake in A+E Global Media to Hearst for approximately $1.2 billion. This move aligns with Disney's focus on streaming services and its ESPN business. The sale grants Hearst full ownership of the television and content venture.
Separately, toy manufacturer Mattel announced its second-quarter results, reporting an adjusted profit of 1 cent per share, which missed analyst expectations of 4 cents. However, Mattel's net sales exceeded estimates, reaching $1.12 billion, bolstered by demand for traditional toys despite a general slowdown in consumer spending.