Disney’s Inside Out 2 has been a massive hit, becoming the highest-grossing animated film of all time and helping boost the entertainment giant’s profits. However, troubles elsewhere in the Magic Kingdom have left analysts disappointed.
In the three months to June, Disney swung to a pre-tax profit as revenue rose, with its streaming business becoming profitable for the first time. But the company’s theme parks brought in less money than expected, partly due to the Olympics in Paris and a drop in consumer spending.
Media analyst Ben Barringer at Quilter Cheviot expressed concerns about the American economic slowdown impacting Disney’s performance. Chief executive Bob Iger was brought out of retirement to help turn the company around, but there is still much work to be done.
Despite these challenges, Disney saw success with the release of Deadpool & Wolverine, which had a record-breaking opening weekend in the US. Analysts are hopeful that upcoming releases like Moana 2 and Mufasa: The Lion King will continue to attract audiences.
While Disney’s streaming business did well in the US and Canada, its business in India saw a decline from the previous year. The company will need to navigate these challenges as it continues to work towards a successful turnaround.
