You might even call it a Disney renaissance.
After a period of turmoil — culture war spats, whipsawing operating strategies, layoffs, proxy campaigns by activist investors for board seats and strikes in Hollywood, to name just a few of the challenges — Disney has returned to its stable, steamrolling self. Robert A. Iger, the chief executive, on Wednesday announced a 44 percent increase in per-share quarterly profit compared with a year earlier, as blockbusters like “Moana 2” and improved streaming financials offset lower ESPN and theme park results.
This is part of the reason that old-line entertainment conglomerates like Disney have different businesses. When one engine (or two) encounters difficulties, others can pick up the slack. Disney beat Wall Street’s profit expectations for the quarter by 31 cents.
But is the old, lower-risk way good enough?
Netflix, which essentially has one business (streaming), has a market capitalization that exceeds the combined value of its legacy competitors Disney, Comcast, Warner Bros. Discovery and Paramount Global. Disney shares closed at $113 on Tuesday, a 17 percent increase from last February. Netflix shares closed at $995, a 77 percent increase.
Comcast is splitting NBCUniversal into two parts as it tries to woo investors. Other competitors, like Paramount, are set on transforming themselves through mergers.
As Mr. Iger has sought to restore Disney’s luster, he has leaned into existing business like cruises. Vacations at sea have become one of the most profitable — and fastest-growing — businesses in the Disney portfolio. In December, he unveiled the 4,000-passenger Treasure, bringing the company’s fleet to six; seven more ocean liners are on order.
For the quarter, costs related to the expansion of Disney Cruise Line and the impact of hurricanes on cruises and attendance at Walt Disney World in Florida contributed to a 5 percent decline in domestic operating income at Disney Parks and Experiences, which is Disney’s largest division. Holiday attendance was solid, bouncing back from weakness in the summer, when some Americans — battered by years of high inflation — pulled back on vacation spending.
Operating income at Disney’s international parks soared 28 percent.
Disney’s streaming operation, which includes Disney+ and Hulu, swung to a profit of $293 million, compared with a loss of $138 million a year earlier. Streaming revenue totaled $6 billion, a 9 percent increase. Higher subscription prices and an increase in ad sales contributed to those results.
Analysts had expected Disney+ to shed several million subscribers in the quarter because of price increases. Instead, Disney limited the decline to 700,000, ending the period with 125 million.
Improving movie quality — with the hoped-for goal of consistently strong ticket sales — has been one of Mr. Iger’s top priorities. The runaway success of “Moana 2,” which collected more than $1 billion worldwide, and, to a lesser extent, results for “Mufasa: The Lion King,” allowed Disney’s movie division to swing to a profit of $312 million, compared with a loss of $224 million a year earlier.
In an indicator of quality, Disney’s art film label, Searchlight Pictures, received eight Oscar nominations for “A Complete Unknown,” which stars Timothée Chalamet as Bob Dylan. The film has taken in $88 million and continues to play.
Cable television continued to bedevil Disney. ESPN’s domestic operating income fell 9 percent, to $231 million, the result of higher programming costs.
For the first time in a year, however, the company’s traditional entertainment networks, anchored by ABC, managed to avoid losses. Operating income was flat at $837 million.
