In this articleDISJosh D'Amaro, chairman of Disney Experiences, speaks during the grand opening ceremony of Shanghai Disney Resort's Zootopia-themed land on December 19, 2023 in Shanghai, China.Vcg | Visual China Group | Getty ImagesThe Walt Disney Company has a new CEO — Josh D'Amaro.The chairman of Disney's experiences division, which includes the company's theme parks, cruise line, resorts and consumer products, was named to succeed long-time CEO Bob Iger. He will be the eighth CEO in Disney's more than ...

Core Viewpoint - Josh D'Amaro is emerging as the leading candidate to become Disney's next CEO, with the experiences business he oversees being crucial to the company's performance amid challenges in the pay-TV sector and underwhelming streaming profits [1][3] Financial Performance - Disney's experiences business generated record profits, contributing significantly to the overall financial results, which exceeded Wall Street estimates for both revenue and earnings, despite a 5% drop in stock price following the earnings report [2][5] - The experiences segment accounted for over 70% of Disney's operating income, even though it represented less than 39% of total revenue [5] Visitor Trends - Per-person spending at Disney's US parks increased by 4% last quarter, while attendance rose only 1%, attributed to a decline in international visitors [7] - The company has successfully increased revenue per visitor through strategies like upselling Lightning Lane fast passes, indicating a strong pricing power without alienating core customers [6][7] Leadership Dynamics - Dana Walden, who oversees Disney's entertainment and TV businesses, is also considered a strong contender for the CEO position, especially given the growth in the streaming unit [4] - Bob Iger expressed optimism about the parks business, highlighting the competition between the experiences and entertainment segments as key drivers of profitability for Disney [8]

Core Insights - Walt Disney reported better-than-expected quarterly results and raised its annual profit forecast, driven by growth in its streaming business, which is central to its future strategy [1][5] - The company entered significant deals with the NFL and WWE to enhance its ESPN streaming service, priced at $29.99 per month, providing access to major sporting events [1][4] Financial Performance - Adjusted earnings per share increased by 16% year-over-year to $1.61, surpassing analyst expectations of $1.47 [2] - For the fiscal year ending in September, Disney projected adjusted EPS of $5.85, a 10-cent increase from previous forecasts [5] Streaming Business Growth - Disney+ and Hulu subscriptions rose by 2.6 million to 183 million, contributing to a 6% revenue increase in the direct-to-consumer segment, which reported an operating income of $346 million, a significant improvement from a loss of $19 million a year ago [8] - The company anticipates adding 10 million Disney+ and Hulu subscribers in the current quarter, primarily through an expanded partnership with Charter [7] Theme Parks and Other Segments - The parks division saw a 13% increase in operating income to $2.5 billion, with domestic parks profits rising by 22% despite new competition from Universal's Epic Universe [9] - Walt Disney World in Orlando achieved record revenue for the quarter [10] Sports Unit Performance - The sports unit's operating income increased by 29% to $1 billion, although domestic ESPN profit fell by 3% due to higher programming and production costs [10]