Today Wednesday, Disney’s combined streaming businesses of Hulu+ and ESPN+ profit for the first time reportedly rose to $23.2 billion beating the analyst’s $23.1 billion forecast.
Walt Disney’s quarterly earnings exceeded Wall Street expectations, buoyed by the success of the animated Pixar film “Inside Out 2”, which helped overcome a profit decline at theme parks.
The operating income for the three months from April to June nearly tripled at its Entertainment unit, with the combined streaming businesses of Disney+, Hulu, and ESPN+ posting a profit for the first time.
However, the experiences segment which includes parks and consumer products and makes up just over half of the profit – recorded an operating income drop of 3%.
Disney said “moderation” of demand at its US parks could continue through the next few quarters.
Operating income for the unit is likely to fall by “mid-single digits” in the July-September quarter compared with the same time a year previously, Disney said.
While the Adjusted earnings-per-share reached $1.39 for Disney’s fiscal third quarter, topping analyst estimates of $1.19, LSEG data showed.
Reacting, Bob Iger the chief executive, touted success in the entertainment division, where Disney’s combined streaming businesses turned a profit a quarter ahead of its projections.
“We are confident in our ability to continue driving earnings growth through our collection of unique and powerful assets,” Iger said in a statement.
Iger, is working to rebuild Disney after billions of dollars in loss from streaming efforts, the decline of traditional television, and a rough patch for its storied film studio.
“Inside Out 2” notched $1.6 billion in global ticket sales and “Deadpool & Wolverine,” which debuted in the current quarter, has brought in more than $850m so far.
“After several years of misfires and muted successes, Disney has now in a month and a half released the highest-grossing animated film of all time and achieved the largest ever opening for an R-rated film,”
While it remains to be seen whether those successes represent a return to form, Fishman said, the upcoming film slate is “filled with highly dependable” titles including “Moana 2” and Oscar-winning director Barry Jenkins’ “Mufasa: The Lion King.”
The Entertainment division, which includes the film, television, and streaming businesses, reported operating income of $1.2 billion in the quarter.
The Disney+, Hulu, and ESPN+ streaming services produced an operating profit of $47m.
At the Sports unit, which includes the ESPN network and Star India business, operating income reached $802m, a 6% decline from the previous year as costs to air cricket matches increased.
The Experiences unit reported operating income of $2.2 billion. While demand slid at domestic parks, cruise ships, consumer products, and some international parks “delivered improved results,” Disney said.
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