Walt Disney Co reported another increase in sign-ups for its streaming services, while revenues rose and profits fell in the first three months of the year.
This comes a month after its rival Netflix Inc (NASDAQ:NFLX) announced a decline in subscriber numbers.
Over 9mln new subscribers joined the company’s online video streaming platforms, most of them signing up to its flagship Disney+. This growth, coupled with the three month period before that, was stronger than Disney executives had expected.
Sales climbed 23% to US$19.25bn, bolstered by its amusement park business that saw revenues more than double, compared with the same period a year ago.
Profits dropped by almost half to US$470mln from roughly US$900mln in 2021.
Disney invested heavily into its streaming services, as it believes this is key to the future of the business because of falling movie attendance and the transition away from conventional television.
The firm, which owns ESPN, Hulu and Hotstar in India, has seen Disney+ subscriber numbers reach almost 138mln since the service was launched in 2019.
Disney’s growth is likely to stay strong, as it continues to expand overseas, according to PP Foresight analyst Paolo Pescatore.
The company is also planning an ad-supported service.