Disney revenues increase in second quarter with help of parks, Disney+

No mention of Reedy Creek dissolution law in earnings call

The Walt Disney Co. missed Wall Street’s expectations for its fiscal second quarter, dinged by over $1 billion it paid in early termination fees for TV shows and films it wanted to use on its own streaming service, Disney+.

ORLANDO, Fla. – Disney released its quarter two earnings during a call with investors Wednesday afternoon.

While the company touted its gains to investors, it did not say anything about the dismantling of the special district that governs Walt Disney World.

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Disney reported increased revenues during Q2 with Disney CEO Bob Chapek saying the performance of domestic parks has been “outstanding.”

Disney reported more than $19 billion in revenue. The parks saw tremendous growth as well with revenue increasing to $6.7 billion.

Disney said they’re seeing increased attendance, hotel bookings and cruise ship sailings.

Disney’s profits did miss Wall Street’s expectations, but only slightly. Analysts expected earnings of $1.19 per share. Disney earned $1.08 per share.

Disney also reported large growth with its streaming service, Disney+. During Q2, Disney said it added nearly 8 million subscribers, bringing the total to more than 137 million subscriptions, beating expectations.

“The growth of the platform since its launch reinforces its unique nature. Quite simply we believe Disney+ is one of a kind, a service based on exceptional branded content with wide appeal based on all four quadrants,” Chapek said.

Investors did not ask questions about the law dissolving the Reedy Creek Improvement District, which governs Walt Disney World.

The company remains in the crosshairs of Republican lawmakers and Florida Gov. Ron DeSantis over its opposition to a new state law barring instruction on sexual orientation and gender identity in kindergarten through third grade.

The governor’s office has said it’s working on plans to address what’s next for the special district. There are legal questions about how the district can be dissolved and whether local governments will have to take on the district’s billion-dollar bond debt, along with services.

Information from the Associated Press was used in this report.


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About the Author:

Amanda Castro, a proud UCF alum, joined the News 6 team in November 2015 and was promoted to weekend morning anchor in April 2016. Go Knights!