Disney achieved robust profits and revenue in the second quarter, fueled by the thriving performance of its domestic theme parks and the significant addition of over a million subscribers to its streaming service.

The company also revised its profit forecast upwards for the year, leading to an 11% increase in share value on Wednesday.

Disney also disclosed its intention to construct a seventh theme park in Abu Dhabi.

For the quarter concluding on March 30, Disney reported earnings of $3.28 billion, equivalent to $1.81 per share, a notable contrast to the $20 million loss, or one cent per share, incurred by the Burbank, California-based corporation in the corresponding period the previous year.

Excluding one-off charges or gains, earnings reached $1.45 per share, significantly surpassing the $1.18 projected by Wall Street, based on a survey by Zacks Investment Research.

Revenue increased by 7% to reach $23.62 billion, exceeding expectations.

Disney Entertainment, encompassing the company's film production and streaming operations, saw its revenue rise by 9%, while the Experiences division, covering its parks, recorded a 6% increase in revenue.

The latest film to achieve significant commercial success is “Thunderbolts,” which currently holds the top position in box office rankings, following recent hits such as “Moana 2” and “Mufasa: The Lion King.” CEO Bob Iger and Chief Financial Officer Hugh Johnston have expressed confidence in the upcoming year’s film releases, including titles like “Lilo & Stitch,” “The Fantastic Four: First Steps,” and “Avatar: Fire and Ash.”

However, Disney confronts potential repercussions stemming from President Donald Trump's trade war. Other American companies have experienced negative reactions from consumers in international markets, and on Monday, Trump initiated a fresh offensive in his tariff dispute, specifically targeting films produced outside the United States.

Currently, Disney's streaming sector is experiencing continued growth. Its direct-to-consumer operations, encompassing Disney+ and Hulu, registered a quarterly operating profit of $336 million, a substantial increase from $47 million in the corresponding period last year. Furthermore, revenue saw an 8% rise.

Within the domestic market, encompassing the U.S. and Canada, Disney+ experienced a 2% uptick in paid subscribers, while international subscribers, excluding those for Disney+ HotStar, saw a 1% increase.

Disney+ saw a modest increase in its paid subscriber base, reaching 126 million in the quarter, a 1% rise from 124.6 million in the previous quarter, which was contrary to The Walt Disney Co.'s earlier projection of a slight decrease.

Disney+ and Hulu collectively amassed 180.7 million subscribers, registering an increase of 2.5 million since the preceding quarter.

According to Mike Proulx, a Forrester vice president and research director, a strong mix of content enabled Disney to surpass financial expectations this quarter as their streaming operations show increasing profitability. He suggested that Disney's focus on investing in local international content might indicate a strategic move to compete more directly with Netflix, a company renowned for its extensive international content library.

Disney has enjoyed a dual advantage from its box-office triumphs, as these productions transition into content for its burgeoning streaming platform.

"Moana 2" has amassed over 139 million streaming hours since its debut on Disney+ on March 12, establishing itself as the most successful Walt Disney Animation Studios' premiere on the service since "Encanto," according to Iger and Johnston. The original "Moana" film continues to hold the distinction of being the most-viewed movie on Disney+, having accumulated more than 1.4 billion streaming hours.

The Experiences division, comprising Disney's six global theme parks, cruise line, merchandise, and videogame licensing, reported a 9% increase in operating income, reaching $2.5 billion. Domestic parks saw operating income rise by 13%, while international parks and Experiences experienced a 23% decline, primarily attributable to weaker performance in its Shanghai and Hong Kong theme parks.

Even as Disney expertly orchestrates its diverse business segments, the company is also actively seeking a successor to Iger, who has served as the public face of Disney for nearly twenty years.

Disney established a succession planning committee in 2023, but the search intensified significantly last year when the company appointed Morgan Stanley Executive Chairman James Gorman to spearhead the initiative.

Disney has some time at its disposal, as Iger agreed to a contract extension that retains his presence at the company until the close of 2026.

Disney is evaluating potential candidates from within and outside the organisation. Within the company, individuals widely considered include Jimmy Pitaro, the chairman of ESPN, which is a Disney subsidiary; Josh D’Amaro, the chairperson of Walt Disney Parks and Resorts; and Alan Bergman and Dana Walden, both co-chairpersons of Disney Entertainment.

Disney anticipates full-year adjusted earnings of $5.75 per share, surpassing the $5.43 per share forecast by analysts surveyed by FactSet. The company's prior projection indicated high-single-digit adjusted earnings per share growth for fiscal 2025.