Originally reported by the Australian Financial Review, The Walt Disney Company pulled in more than $1 billion in Australian revenue over the past financial year, yet most of that income flowed back to the United States through royalty payments, leaving a relatively modest local tax bill.

Regulatory filings lodged with the Australian Securities and Investments Commission show the entertainment giant increased both revenue and profit in Australia, even as its worldwide results fell short of expectations. Revenue climbed from $743 million to $1.01 billion in the year to the end of September, while profit rose by about one third to $63 million.

Despite that growth, the Australian arm again paid just $16 million in tax, the same amount as the year before. The reason was the scale of royalty fees paid to Disney’s US parent, which absorbed the bulk of local earnings.

The accounts cover Disney’s streaming operations, film distribution and the ESPN sports broadcasting business. Licensing was by far the largest contributor, generating $854 million of revenue. The figure was boosted by the inclusion of ESPN Australia’s income for the first time.

Stronger takings from Disney+ also helped lift results, alongside the performance of major cinema releases such as Moana 2 and Mufasa: The Lion King. During the year, Disney spent about $144 million on production-related work in Australia.

Disney+ remains one of the country’s most widely used streaming services, though it trails its largest rivals. Research from Telsyte found Netflix reached 6.4 million Australians in June last year, followed by Amazon Prime on 4.9 million. Disney+ ranked third with 3.3 million viewers, ahead of Nine Entertainment-owned Stan.

The filings do not separate streaming revenue, but they cover a period in which Disney lifted subscription prices. The standard Disney+ plan increased from $13.99 a month to $15.99 in March, while the premium tier rose from $17.99 to $20.99.

Disney Australia managing director Kylie Watson-Wheeler said passing the $1 billion revenue mark underscored the scale of the company’s local presence. She said the business now operates at a level consistent with one of the country’s largest media and entertainment groups, supported by long-standing industry relationships.

Globally, Disney+ is the main driver of the company’s direct-to-consumer division, which recently reported profit of $US1.3 billion, or about $1.8 billion, on revenue of $US25 billion. That result represented an increase of roughly 800 per cent compared with the previous year.

The head of Disney’s streaming division, Alisa Bowen, said last year that subscribers were drawn to a mix of global franchises and locally relevant content. She said the two approaches could reinforce each other, allowing partnerships that expand local production without undermining blockbuster releases.

Even with strong Australian growth, Disney has repeatedly fallen short of market earnings forecasts over the past two years. Adding to the uncertainty, The Wall Street Journal reported last week that chief executive Bob Iger had privately signalled plans to step down before his contract expires at the end of the year. Potential successors reportedly include parks and games chief Josh D’Amaro and television and streaming head Dana Walden.