By Tali Arbel, AP Technology Writer
The Walt Disney Co. swung to a profit in its most recent quarter as reopened parks provided a revenue bounce.
Revenue in the parks and products division surged to $4.3 billion from $1.1 billion a year ago, as theme parks closed last year were open for part or all of this year's quarter. Disney World in Florida has been open since last summer; California's Disneyland only came back at the end of April.
The effect of the pandemic lingers at the parks, many of which are operating at reduced capacities, the company says. Disney is among the country's largest employers to require worker vaccinations. It also announced in July that visitors to its U.S. theme parks must again wear masks indoors.
Disney on Thursday reported that its net income was $918 million in the three months through July 3, compared with a loss of $4.72 billion in its fiscal third quarter a year ago. Earnings per share came to 50 cents, or 80 cents excluding one-time items, while revenue climbed 45% to $17.02 billion.
Analysts polled by FactSet predicted earnings of 55 cents per share on revenue of $16.76 billion. Disney shares jumped more than 5% to $188.72 in after-hours trading.
The company ended the quarter with 116 million Disney+ subscribers, about double the number from a year ago, and nearly 174 million streaming subscribers including Disney+, ESPN+ and Hulu.
Disney+ expects 230 to 260 million subscribers by 2024.
Disney's kid-friendly back catalog and original hit series like Marvel's "WandaVision" and the Star Wars spinoff "The Mandalorian" have helped drive sign-ups as people stuck at home during the pandemic needed something to do.
The streaming industry leader, Netflix, has had some growing pains this year after 2020's record-setting subscriber gains and as competition increases.
Marvel's "Black Widow" came out in July and brought in the biggest domestic box-office haul this year, but Disney's pandemic strategy of releasing it simultaneously on Disney+, for $30 a pop, led to Hollywood drama. Its star, Scarlett Johansson, sued Disney, saying it deprived her of potential earnings from the theater screenings. Her pay is based in part on the film's box office.
"Our direct-to-consumer business is the company's top priority," said CEO Bob Chapek on an investor call.
Revenue at the media and entertainment distribution division, which includes the streaming services, the TV networks and the company's huge movie business, rose 18% to $12.68 billion.
Kendrick Lamar will headline the 2025 Super Bowl halftime show
Kendrick Lamar will pop out on the NFL's biggest stage next year: The Grammy winner will headline the Apple Music Super Bowl Halftime Show in New Orleans.
The NFL, Apple Music and Roc Nation announced Sunday that Lamar would lead the halftime festivities from the Caesars Superdome on Feb. 9. The rap megastar, who has won 17 Grammys, said he's looking forward to bringing hip-hop to the NFL's championship game, where he performed as a guest artist with Dr. Dre and Snoop Dogg in 2022.
"Rap music is still the most impactful genre to date," Lamar said in a statement. "And I'll be there to remind the world why. They got the right one."
Lamar has experienced massive success since his debut album "good kid, m.A.A.d city" in 2012. Since then, he's accumulated 17 Grammy wins and became the first non-classical, non-jazz musician to win a Pulitzer Prize for his 2017 album "DAMN."
The rapper's latest album "Mr. Morale & The Big Steppers," was released in 2022. He was featured on the song "Like That" with Future and Metro Boomin on a track that spent three weeks at No. 1 on the Billboard Hot 100 this year. He also garnered another hit with "Not Like Us."
Roc Nation founder Jay-Z called Lamar a "once-in-a-generation" artist and performer.
"His deep love for hip-hop and culture informs his artistic vision," Jay-Z said. "He has an unparalleled ability to define and influence culture globally. Kendrick's work transcends music, and his impact will be felt for years to come."
Roc Nation and Emmy-winning producer Jesse Collins will serve as co-executive producers of the halftime show. The creative direction of Lamar's performance will be provided by pgLang.
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