Disney's Strategic Shift Amidst Stagnant International Visits

Disney faces challenges with declining international visitors to U.S. theme parks, affecting its share value. The entertainment giant gears up for a CEO transition as Josh D'Amaro emerges as a potential successor. Despite issues, Disney reports a revenue rise, focusing on domestic promotions and streaming growth.

Walt Disney Co. experienced a nearly 5% drop in shares on Monday following a reported decline in international visitors to its U.S. parks and decreased earnings in its TV and film division. This comes as Disney prepares to announce a successor to outgoing CEO Bob Iger. CFO Hugh Johnston noted the company is intensifying promotional efforts directed at U.S. consumers due to reduced visibility on the international front.

The entertainment conglomerate's unit, encompassing film studios, TV networks, and streaming services, saw a 35% plunge in operating profit stemming from the costs of marketing major theatrical releases like "Zootopia 2" and "Avatar: Fire and Ash." Disney also decided to stop releasing revenue and operating income data for TV channels, terming it irrelevant in a widely distributed entertainment landscape.

Speculation is rife about Josh D'Amaro, chairman of the experiences division, possibly succeeding Iger, a move welcomed by investors, thanks to the division's strong performance. Disney's parks, cruises, and consumer products significantly contributed to the quarter's $10 billion revenue, 72% of operating profit. Despite a U.S. dip in foreign visitors, Disney's revenue rose 5% to $26 billion, surpassing Wall Street forecasts.

(With inputs from agencies.)