People are flocking to theme parks despite the rise in Delta variant cases in Florida. Will this be a short-lived recovery or will profits keep rising?
Walt Disney Co reported better-than-expected quarterly revenue on Thursday, as it raked in new streaming subscribers and visitors began to return to its theme parks.
Shares of the entertainment company rose 2.6 percent in extended trading.
Disney’s Disney+ service has done well in the pandemic-led boom in streaming, establishing a strong base to compete with Netflix Inc and others.
With the easing of most U.S. restrictions and rising vaccination rates, theme park revenue rose for the first time in five quarters, hitting $4.34 billion.
The company’s overall revenue rose 45 percent to $17.02 billion in the third quarter, topping analysts’ estimate of $16.76 billion, according to IBES data from Refinitiv.
Net income from continuing operations was $923 million, or 50 cents per share, compared with a loss of $4.72 billion, or $2.61 per share, a year earlier.
(Reporting by Tiyashi Datta and Eva Mathews in Bengaluru; Editing by Maju Samuel)
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Photo credit: The Cinderella Castle at Walt Disney World Resort in Orlando, one of the theme parks helping lead the company's recovery. Backattaxk251 / WikiMedia/Skift