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

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

Disney has additionally unveiled intentions to erect a seventh theme park in Abu Dhabi.

Over the quarter ending March 30, Disney posted earnings of $3.28 billion, translating to $1.81 per share, a stark contrast to the $20 million loss, or one cent per share, reported by the Burbank, California-based company in the corresponding period last year.

Excluding exceptional items, earnings reached $1.45 per share, substantially surpassing the $1.18 anticipated by Wall Street, based on a Zacks Investment Research survey.

Revenue increased by seven percent, reaching $23.62 billion, a figure which also exceeded forecasts.

Disney Entertainment, encompassing the company’s film production and streaming platforms, saw revenue rise by 9%, whereas the Experiences sector, comprising its theme parks, reported a 6% increase in revenue.

Current cinematic successes feature "Moana 2" and "Mufasa: The Lion King," while their most recent offering, "Thunderbolts," presently holds the top position in box office rankings. CEO Bob Iger and Chief Financial Officer Hugh Johnston expressed confidence in this year's cinematic lineup, mentioning titles such as "Lilo & Stitch," "The Fantastic Four: First Steps," and "Avatar: Fire and Ash" in their official statements.

However, Disney could face repercussions from the trade dispute initiated by President Donald Trump, as other US corporations have observed negative reactions from consumers in foreign markets, and on Monday, Trump escalated his tariff conflict by targeting films produced outside the US.

Currently, Disney's streaming division demonstrates ongoing expansion, with its direct-to-consumer sector, encompassing Disney+ and Hulu, reporting quarterly operating profits of $336 million, a significant rise from the $47 million recorded in the corresponding quarter of the preceding year, alongside an 8% surge in revenue.

Disney+ saw a 2% growth in its paid domestic subscriber base, encompassing the U.S. and Canada, while experiencing a 1% increase internationally, excluding the HotStar service.

In the past quarter, Disney+ witnessed a slight increase of 1% in its total paid subscribers, reaching an unanticipated 126 million, a rise from 124.6 million in the preceding quarter, contrary to The Walt Disney Co.'s earlier forecast of a modest decrease.

The total number of subscribers for Disney+ and Hulu reached 180.7 million, indicating an increase of 2.5 million compared to the preceding quarter.

According to Mike Proulx, Forrester vice president and research director, Disney's robust content mix contributed to a stronger-than-anticipated quarter, bolstered by the increasing profitability of its streaming division. He suggests that Disney's focus on investing in local international content may indicate a strategic move to directly challenge Netflix, a company recognised for its extensive international catalogue.

Disney has reaped dual benefits from box office triumphs, as these productions transform into valuable content for its expanding streaming service.

Since its debut on Disney+ on March 12, "Moana 2" has garnered over 139 million hours of streaming, establishing it as the most significant Walt Disney Animation Studios' premiere on the platform since "Encanto," according to Iger and Johnston. The original "Moana" film retains its position as the most-watched movie on Disney+, having accumulated more than 1.4 billion streaming hours.

The Experiences division, encompassing Disney's six worldwide theme parks, its cruise line, merchandise, and videogame licensing operations, recorded a 9% increase in operating income, reaching $2.5 billion. Domestically, operating income within the parks saw a 13% surge. However, operating income for international parks and Experiences declined by 23%, attributed to weaker performance at its Shanghai and Hong Kong theme parks.

While Disney persists in skillfully manipulating the various facets of its operations, it also remains engaged in the quest for a successor to Iger, who has been the prominent figure of Disney for the better part of two decades.

Disney established a succession planning committee in 2023, though the intensive search commenced last year upon engaging Morgan Stanley Executive Chairman James Gorman to spearhead the initiative.

Disney has some leeway, as Iger's contract extension ensures his tenure at the company until the close of 2026.

Disney is considering both internal and external candidates for the position, with key internal contenders reportedly including the chairman of ESPN, Jimmy Pitaro, the Chairperson of Walt Disney Parks and Resorts, Josh D’Amaro, and Disney Entertainment Co-Chairmen Alan Bergman and Dana Walden.

Disney anticipates adjusted earnings of $5.75 per share for the full year, exceeding the $5.43 per share estimate from analysts surveyed by FactSet. The company had previously projected high-single digit adjusted earnings per share growth for fiscal year 2025.