By Isabella Simonetti

Disney's theme parks and entertainment streaming business notched positive results in the most recent quarter, offering signs the company's strategy in both areas is paying off.

The company cautioned that it recognized economic uncertainty would shadow its "operating environment for the balance of the fiscal year."

Disney's entertainment streaming business, which includes the Disney+ and Hulu services, reported a profit of $336 million for the March quarter, compared with $47 million in the same period a year earlier.

The streaming services had 180.7 million subscribers by the end of March, up 2.5 million from the prior quarter.

Meanwhile, Disney's experiences unit, which includes its theme parks and cruises, posted operating income of $2.49 billion in the quarter, up 9% from the same period a year earlier.

Chief Executive Bob Iger cited the company's positive results and said Disney has "a lot more to look forward to," including its slate of movie releases and ESPN's direct-to-consumer offering that is set to launch later this year.

Overall, Disney's $23.62 billion in revenue rose 7% from the period a year earlier.

The company reported $3.09 billion in income before income taxes, up from $657 million during the period a year earlier, and diluted earnings per share of $1.81, compared with a 1 cent loss during the prior period.

The company, based in Burbank, Calif., combines theme parks, cable-television networks and movie studios.

Like rivals, Disney has been facing long-term concerns such as declining cable-TV use as well as near-term threats, including the possibility of a tariff-induced economic slowdown that chills advertising and travel.

Moviemakers confronted a potential new headache this week, after President Trump called for a 100% tariff on imported movies.

The company said it was monitoring macroeconomic developments for any impact on its businesses.

Disney's parks are key financial drivers. The company's experiences unit, which they are part of, has accounted for most of the company's overall operating income in recent fiscal years. Although operating income rose at the U.S. side of the business, it fell internationally.

Operating income on the unit's international side fell $67 million to $225 million. Disney attributed the drop to lower theme-park attendance and increased costs at its resorts in Shanghai and Hong Kong.

The company's television networks reported a 2% increase in operating income for the quarter to $769 million from the period a year earlier.

To deal with cord-cutters, the company has been trying to build out its streaming offerings and make its Disney+ streaming site into a must-have entertainment hub.

Likewise, ESPN is planning to take its flagship network direct-to-consumer later this year.

Write to Isabella Simonetti at isabella.simonetti@wsj.com

(END) Dow Jones Newswires

May 07, 2025 06:50 ET (10:50 GMT)

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