Disney Profit Beats Forecast as TikTok Clips Head to Disney+

Прибуток Disney перевищив прогноз на тлі угоди з TikTok

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Disney reported stronger-than-expected adjusted earnings and announced a TikTok deal that will bring selected fan videos into Disney+.

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Disney delivered stronger-than-expected adjusted profit in its fiscal third quarter and announced a global content agreement with TikTok. The two developments connect the company’s traditional strengths in films and theme parks with its effort to make Disney+ more competitive in short-form entertainment.

For the three months ending June 27, Disney reported of $2.06 per share. Analysts surveyed by FactSet had expected $1.86. That was a clear earnings beat. Net income was $2.64 billion, or $1.51 per share, after including charges and other items excluded from the adjusted figure.

The revenue picture was more mixed. Total rose 7 percent from a year earlier to $25.25 billion. Wall Street had expected about $25.39 billion, meaning sales grew but narrowly missed the . Describing the entire report as a beat would therefore be inaccurate: profit exceeded estimates, while revenue did not.

Disney’s Experiences division supplied much of the strength. The unit includes theme parks, cruise ships, merchandise and video-game licensing. Its revenue reached $9.97 billion, while climbed 20 percent to $3.02 billion. Attendance at US parks increased 3 percent, supported mainly by domestic visitors and annual passholders.

Entertainment also benefited from successful releases. “Toy Story 5” passed $1 billion at the global box office and increased viewing of older films in the franchise on Disney+. Merchandise linked to the series helped consumer products record its strongest year-over-year growth in 20 quarters.

Streaming continued to improve. Revenue from Disney+ and Hulu rose 11 percent to $5.53 billion, helped by more subscribers, higher prices and increased advertising income. The direct-to-consumer streaming business reportedly doubled its quarterly profit, strengthening Disney’s attempt to replace some of the money lost as audiences leave traditional cable channels.

Alongside the results, Disney and TikTok announced a first-of-its-kind global . It will bring selected Disney-focused videos made by TikTok users into Disney+. The companies described the material as fan-created content. It will not be an unrestricted stream of everything posted under Disney-related tags.

The arrangement gives Disney+ a faster route into the vertical, format popular on phones. It also gives TikTok creators a possible new audience inside a major subscription service. Important questions remain about selection, creator permission, payment, moderation and how prominently the clips will appear in the Disney+ interface.

Disney has been experimenting with ways to add shorter material as viewing habits change. The partnership may help keep users inside the app between major film and series releases. At the same time, some subscribers may worry that social-media clips could weaken the service’s premium identity or replace investment in professionally produced programs.

The company also announced other financial moves. Disney agreed to sell its 50 percent stake in A+E Global Media to Hearst for $1.2 billion. Disney raised its fiscal-year target to at least $9 billion. Shares rose nearly 3 percent in early trading after the report.

The quarter therefore offered investors several different signals. Parks, streaming and major film franchises performed well, and adjusted profit beat forecasts. Revenue was slightly below expectations, international tourism remained a concern and the TikTok deal still requires practical details. Disney’s challenge is to turn short-form engagement into lasting value without making Disney+ feel like another social feed.

Disney Profit Beats Forecast as TikTok Clips Head to Disney+

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