LOS ANGELES (Reuters) – Walt Disney Co. beat expectations for third-quarter earnings on Wednesday, buoyed by the success of Pixar’s animated film “Inside Out 2,” which helped offset a decline in profit at its theme parks.

Disney’s Entertainment unit’s operating profit nearly tripled in the April-June period, as the combined streaming businesses of Disney+, Hulu and ESPN+ posted their first quarterly profit.

However, the “Experiences” segment, which includes parks and consumer products and represents just over half of the group’s profits, recorded a 3% drop in its operating profit.

Disney said “moderation” in demand at its U.S. parks could continue in coming quarters.

The entertainment giant also warned that operating income from its Experiences segment is expected to decline by a “mid-single-digit” percentage in the next quarter compared to the previous year.

Disney’s adjusted earnings per share reached $1.39 (1.27 euros) in the third quarter, above analysts’ expectations of $1.19 per share, according to LSEG data.

Revenue rose 4% over the period to $23.2 billion, also above analysts’ expectations of $23.1 billion.

Disney’s combined streaming business posted a quarterly profit ahead of schedule, Chief Executive Bob Iger said, touting the success of the entertainment division.

The film “Inside Out 2” has generated $1.6 billion in worldwide revenue and “Deadpool & Wolverine,” which was released during the current quarter, has already grossed more than $850 million.

During the quarter, the Entertainment division, which includes the film, television and streaming businesses, recorded operating income of $1.2 billion.

Streaming services Disney+, Hulu and ESPN+ generated operating income of $47 million.

Disney shares fell 0.8% in pre-market trading.

(Reporting by Dawn Chmielewski and Lisa Richwine in Los Angeles; Editing by Augustin Turpin; Editing by Mara Vîlcu)

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