Walt Disney Company's performance is being repaired, Eg succeeds in succession and becomes NEW FOCUS AUTO.

Thanks to the outstanding performance of its theme park business and the massive box office success of the animated movie "Zootopia 2", Walt Disney Company (DIS.US) exceeded revenue and profit expectations during the holiday season ending in December, driving the company's stock price to rise over 4% in pre-market trading on Monday. For the first quarter of the 2026 fiscal year ending on December 27, Walt Disney Company's overall revenue increased by 5% year-on-year to $26 billion, surpassing analysts' expectations of $25.7 billion. The company achieved pre-tax profit of $3.7 billion, also higher than Wall Street's forecast of $3.5 billion. Adjusted earnings per share were $1.63, a 7% decrease from the same period last year, but still higher than analysts' expectations of $1.57. The experience business, covering theme parks, cruises, and consumer products, became the absolute revenue pillar, with revenue breaking the $10 billion mark for the first time, contributing 72% of the company's nearly $5 billion quarterly operating profit. In particular, performance at the Walt Disney World Resort showed significant growth, as the previous year's quarter saw the Orlando parks closed due to Hurricane "Milton", resulting in a significant year-on-year improvement in performance this quarter. Additionally, the Entertainment segment of Walt Disney Company, including film studios, TV networks, and streaming services, saw revenue reach $11.6 billion this quarter, a 7% increase year-on-year. This growth was mainly driven by holiday box office hits: according to Comscore data, global box office for Walt Disney Company's animated sequel "Zootopia 2" has nearly reached $1.8 billion, while "Avatar: Fire and Ashes" has surpassed $1.4 billion globally, making these two films core box office hits for the holiday season. However, operating profit in the entertainment segment fell by 35% year-on-year, partly due to high marketing costs for films - "Avatar: Fire and Ashes" premiered in the final week of this fiscal quarter, with the company investing heavily in marketing expenses for this film and eight other films, compared to only four films released during the holiday season last year; and also due to a $140 million decrease in political advertising revenue compared to the same period last year, which also had a negative impact on profits. It is worth noting that during this fiscal quarter, Walt Disney Company had a two-week contract dispute with YouTube TV, leading to millions of subscribers unable to watch ESPN and other Walt Disney Company-owned channels, resulting in a $110 million loss for the company's sports business segment, causing a 23% year-on-year drop in operating profit for this segment. Data shows that revenue for Walt Disney Company's sports business grew slightly by 1% to $4.9 billion, with operating profit decreasing to $191 million. Performance was under pressure due to the aforementioned authorization dispute impact, as well as rising program production costs and a decrease in NBA regular season broadcasts. Walt Disney Company's streaming business (including Disney+, Hulu, ESPN+) performed well, with operating profit surging by 72% to $450 million this quarter, and revenue increasing by 13% to $4.4 billion year-on-year. Currently, Walt Disney Company no longer discloses the number of subscribers for its streaming services. Looking ahead, Walt Disney Company expects the operating profit of the entertainment segment in Q2 to remain flat compared to the same period last year, but anticipates a $500 million profit from its streaming business, an increase of $200 million from the previous year. Walt Disney Company also stated that the operating profit of the experience business sector will see "moderate" growth due to the costs associated with new ship deployments and challenges in attracting international visitors, while the profit from the sports division will decrease by $100 million due to the increase in copyright fees. Looking at the full year, Walt Disney Company has reiterated its full-year forecast for double-digit earnings per share growth compared to the 2025 fiscal year, and expects operating activities to generate $19 billion in cash flow for the full year, with a $7 billion stock buyback plan progressing as planned. Successor suspense emerges At the time of the release of this financial report, who will succeed Bob Iger as CEO has become a focus of attention. This is the second time Walt Disney Company has searched for a successor to Iger - Bob Chapek took over in 2020, only to be dismissed after two years, with Iger taking back the reins. At that time, Walt Disney Company's stock price was under pressure, and the company urgently needed to boost its film and television business and revive its theme park performance. Chief Financial Officer Hugh Johnston said, "Accelerating development of the park business, profitable streaming, and achieving double-digit profit margins, all lay a solid foundation for the new CEO." However, he declined to comment on the successor's choice. According to sources, the Walt Disney Company board of directors is expected to vote on Iger's successor at a meeting this week. The company had previously stated that they would announce the successor in the first quarter of this year. Hollywood executives generally believe that Josh D'Amaro, chairman of Walt Disney Company's experience division, is the leading candidate.