Shares in The Walt Disney Company were indicated to open 1% higher on Monday after the group posted first-quarter results that beat expectations on revenue and earnings per share.
Adjusted earnings came in at $1.63 per share, above forecasts of $1.56, while revenue rose 5% year on year to $26 billion, exceeding consensus estimates of $25.7 billion, according to Bloomberg.
Total operating income fell to $4.6 billion from $5.1 billion a year earlier, with the company citing higher costs across its business segments.
Disney’s experiences division, which includes theme parks and cruise lines, posted record quarterly revenue of $10 billion. Domestic park attendance rose 1%, with average guest spending up 4%.
The company said it expects reduced international travel to its US parks to act as a headwind in the current quarter.
The results were released shortly after a report suggested that Josh D’Amaro, who heads Disney’s parks and experiences unit, is under consideration as the group’s next chief executive.
Shares initially rose by about 3% following the release but reversed course ahead of market open.
Disney’s sports segment reported a 23% drop in operating income, driven by higher rights costs for National Basketball Association and college sports content, as well as a $110 million impact from a carriage dispute with YouTube TV. Revenue for the unit rose 1% to $4.91 billion.
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Turnover in the entertainment segment, which includes film and streaming, grew 7% to $11.6 billion, led by box office success for Zootopia 2 and Avatar: Fire and Ash. Segment profits declined 35% to $1.1 billion due to increased production and marketing costs.
The company said streaming revenue, included within the entertainment segment, grew 11% to $5.3 billion.