Disney's theme park revenue soared, but a prolonged YouTube contract dispute dampened its Q1 earnings

A grounds fiscal 4th for Walt Disney Co.’s taxable parks part was dampened somewhat by a streaming aquisition and a protracted combat with YouTube, the Burbank media and amusement elephantine reported Monday.

Disney recorded wide gross of astir $26 cardinal successful the three-month play that ended Dec. 27, up 5% compared to the erstwhile year. Disney’s income earlier income taxes totaled astir $3.7 billion, a 1% leap from the aforesaid clip play past year. Earnings per stock were $1.34 for the quarter, down from $1.40.

Disney Chief Executive Bob Iger said successful a connection that helium was “pleased” with the company’s commencement to the fiscal twelvemonth and nodded astatine the modulation up to a caller CEO.

“As we proceed to negociate our institution for the future, I americium incredibly arrogant of each that we’ve accomplished implicit the past 3 years,” helium said.

It was a large 4th for Disney’s experiences division, which includes its taxable parks, cruise enactment and Aulani edifice and spa successful Hawaii.

The assemblage reported $10 cardinal successful revenue, aided by a 1% bump successful attendance astatine its home taxable parks and higher impermanent spending. The motorboat of the caller Disney Destiny cruise vessel successful November besides helped boost operating income to $3.3 billion, a 6% boost compared to the erstwhile year.

Disney’s container bureau occurrence with billion-dollar hits similar “Zootopia 2” and “Avatar: Fire and Ash” helped propel gross for its amusement part by 7% to $11.6 billion. But costs related to its acquisition of a bulk involvement successful FuboTV, arsenic good arsenic higher selling costs successful theatrical organisation and streaming services affected the sector’s operating income, which declined 35% to $1.1 billion.

The dip successful operating income from the amusement assemblage took a toll connected the company’s full conception operating income, which was down 9% to $4.6 billion. That was besides partially owed to Disney’s declaration quality past autumn with YouTube TV, which lasted for astir 15 days and resulted successful a blackout of Disney channels.

The impermanent suspension of Disney channels connected YouTube TV took a $110 cardinal toll connected operating income wrong Disney’s sports division, which was down 23% to $191 million. Sports gross for the 4th totaled $4.9 billion, up 1% compared to the erstwhile year.