Disney Rises Profits Thanks to Inside Out 2

Disney's latest animated feature, *Inside Out 2*, has propelled the company to a pre-tax profit in the three months leading to June, marking a significant milestone as it became the highest-grossing animated film of all time. This success, coupled with the streaming division achieving profitability for the first time, has contributed positively to Disney's financial outlook. However, the overall results fell short of analysts' expectations, particularly due to disappointing revenue from its theme parks, which are crucial to the company's profitability. The decline in theme park revenue has been attributed to various factors, including the upcoming Olympics in Paris, which has diverted potential visitors. Analysts have expressed concerns that lower demand in U.S. parks may persist into the latter half of the year, raising alarms about the broader implications of an economic slowdown in America. Media analyst Ben Barringer noted that these results could exacerbate fears regarding the economic climate, which has already left global stock markets unsettled. Despite these challenges, Disney's recent film releases, including the highly anticipated *Deadpool & Wolverine*, have shown promise, achieving record-breaking openings. Moffett Nathanson analyst Robert Fishman highlighted the contrast between recent successes and the company's previous struggles, suggesting that while Disney has made significant strides, it remains to be seen if this momentum can be sustained. While the streaming business has thrived in North America, it faced a setback in India, experiencing a 6% decline from the previous year. As Disney navigates these mixed results, the focus will be on upcoming titles like *Moana 2* and *Mufasa: The Lion King* to maintain audience engagement and drive future growth.