Disney reported healthy profits and revenue in the second quarter, boosted by the robust performance of its domestic theme parks and the addition of more than a million subscribers to its streaming service.

The company also revised its profit forecasts for the year upwards, leading to an 11% surge in shares on Wednesday.

Disney has also unveiled its intentions to establish a seventh theme park in Abu Dhabi.

Over the quarter concluding on March 30, Disney generated profits of $3.28 billion, equating to $1.81 per share, a notable contrast to the $20 million loss, or a penny per share, incurred by the Burbank, California-based corporation during the corresponding period the previous year.

Excluding one-off charges or gains, earnings stood at $1.45 per share, comfortably exceeding Wall Street's forecast of $1.18, according to a Zacks Investment Research survey.

Revenue saw a 7% increase, reaching $23.62 billion, and also exceeded projections.

Revenue generated by Disney Entertainment, which encompasses the corporation's film production facilities and streaming platform, escalated by nine percent, whilst income from the Experiences division, comprising its theme parks, rose by six percent.

Notable recent cinematic successes encompass “Moana 2” and “Mufasa: The Lion King,” with the current box office leader being their most recent release, “Thunderbolts.” In pre-written statements, CEO Bob Iger and Chief Financial Officer Hugh Johnston conveyed optimism regarding the forthcoming cinematic releases this year, featuring titles such as “Lilo & Stitch,” “The Fantastic Four: First Steps,” and “Avatar: Fire and Ash.”

However, Disney could face problems because of the trade war started by President Donald Trump. Other US companies have seen consumers in other countries react negatively, and on Monday, Trump started a new part of his tariff war, focusing on movies made outside the US.

Currently, Disney's streaming division is experiencing sustained growth. Its direct-to-consumer sector, encompassing platforms such as Disney+ and Hulu, reported a quarterly operating profit of $336 million, a substantial increase from the $47 million recorded in the corresponding period of the previous year. Furthermore, revenue saw an 8% rise.

Domestically, comprising the U.S. and Canada, the Disney+ streaming service witnessed a 2% uptick in paid subscribers, while internationally, excluding Disney+ HotStar, there was a 1% increase.

Total paid subscribers for Disney+ saw a marginal increase of 1% in the quarter, reaching an unexpected 126 million subscribers, compared to 124.6 million in the preceding quarter, defying The Walt Disney Co.'s prior forecast of a slight decrease in Disney+ subscribers during the second quarter relative to the initial three months of the year.

The combined subscriber base for Disney+ and Hulu reached 180.7 million, representing an increase of 2.5 million compared to the initial quarter.

"Disney’s content mix significantly contributed to a stronger-than-anticipated financial quarter, driven by the sustained profitability of its streaming operations," stated Mike Proulx, a vice president and research director at Forrester, in an email. "Disney's apparent focus on investing in localised international content may indicate a strategy to directly challenge Netflix, renowned for its substantial international catalogue."

Disney has reaped significant dual benefits from its cinematic triumphs, as these productions transition into valuable content for its burgeoning streaming platform.

According to Iger and Johnston, "Moana 2" has accumulated over 139 million streaming hours since its Disney+ release on March 12, establishing it as the most significant premiere for a Walt Disney Animation Studios film on the platform since "Encanto." They also stated that the original "Moana" film continues to hold the record as the most-streamed movie on Disney+, with viewership exceeding 1.4 billion hours.

The Experiences division, encompassing Disney's six worldwide theme parks, cruise line, merchandise, and video game licensing, disclosed a 9% increase in operating income, reaching $2.5 billion. Within this division, domestic parks saw a 13% rise in operating income, while international parks and Experiences experienced a 23% decline, primarily attributed to weaker performance at its Shanghai and Hong Kong theme parks.

As Disney adeptly navigates the various facets of its enterprise, it also persists in seeking a successor to Iger, who has been the prominent figurehead for the company for the majority of the last twenty years.

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

Disney still has a window of opportunity, given that Iger's contract has been extended, ensuring his tenure at the company until the close of 2026.

Disney is considering both internal and external prospects, with widely speculated internal candidates including Jimmy Pitaro, the chairman of Disney-owned ESPN, Josh D’Amaro, Chairperson of Walt Disney Parks and Resorts, and Disney Entertainment Co-Chairmen Alan Bergman and Dana Walden.

Disney is forecasting adjusted earnings of $5.75 per share for the entire year, surpassing the $5.43 per share anticipated by analysts surveyed by FactSet. The company's earlier projection indicated high-single digit adjusted earnings per share growth for the fiscal year 2025.