Disney presented results for the third fiscal quarter of 2024 (ended June 29) in which it exceeded market estimates thanks to the combined streaming division, which had positive figures earlier than the company itself expected.
The entertainment company’s net profits stood at US$2.621 billion compared to losses of US$460 million in the same period of the previous year. This translates into a earnings per share (EPS) of $1.43 compared with a loss of $0.25 per share a year earlier and above the consensus forecast of $1.19.
In the case of the incomerose to $23.155 billion, 4% more than the $22.330 billion obtained between April and June 2023, and a better figure than the projected $23.070 billion.
Disney: How much did streaming revenue increase?
Regarding the total operating income The company’s segment revenues have increased by 19% to $4.225 billion compared to last year, led by the Disney entertainment unitparticularly streaming.
In this sense, Disney’s combined streaming business, which consists of Disney+, Hulu and ESPN+experienced profits for the first time, something that has happened a quarter earlier than the company expected.
This division has recorded a operating profit of $47 millioncompared with a loss of $512 million in the same quarter last year. However, without ESPN+the direct-to-consumer streaming unit reported a loss of $19 million.
It should be remembered that Disney recently changed the way it reports its segmentswith ESPN falling under its sports unit, and Disney+ and Hulu counting as part of the direct-to-consumer entertainment segment.
The Top Disney+ subscriberswhich exclude Disney+ Hotstar in India and other countries in the region, have added 1% to 118.3 million, despite the company’s previous guidance that it would not add any new customers during the fiscal third quarter. total Hulu subscribers grew by 2% to 51.1 million.
Disney theme parks suffered a downturn
However, while Disney’s entertainment and sports divisions drove earnings, the US theme park business It was seen affected by the slowdown consumer demand and inflation.
The income of the general unit of experienceswhich includes domestic and international parks and experiences, as well as consumer products, rose 2% to $8.386 billion.
The US parks operating income decreased by 6%, while operating income from international parks increased by 2%. The company attributed the decrease in operating income at domestic parks to the higher costs driven by inflationas well as increased spending on technology and new guest offerings.
“The portfolio is working well“Yes, there was weakness in the domestic parks, but entertainment division earnings tripled in the quarter,” said Disney Chief Financial Officer Hugh Johnston.
Source: Ambito
