Disney returns to profits in third quarter as streaming business starts making money for first time
Aug 7, 2024, 4:35 AM
FILE - The Cinderella Castle is seen at the Magic Kingdom at Walt Disney World, July 14, 2023, in Lake Buena Vista, Fla. (AP Photo/John Raoux, File)
Credit: ASSOCIATED PRESS
(AP Photo/John Raoux, File)
The Walt Disney Co. returned to a profitable third quarter as its combined streaming business started making money for the first time and the movie Inside Out 2 did well in theaters.
For the period ended June 29, Disney earned $2.62 billion, or $1.43 per share. A year earlier it lost $460 million, or 25 cents per share.
Stripping out one-time gains, earnings were $1.39 per share, easily topping the $1.20 analysts polled by Zacks Investment Research expected.
Revenue for the Burbank, California, company rose 4% to $23.16 billion, beating Wall Street’s estimate of $22.91 billion.
Operating income for the entertainment segment nearly tripled to $1.2 billion thanks to better performances from its direct-to-consumer and content sales/licensing and Other segments.
Disney said Wednesday that its direct-to-consumer business, which includes Disney+ and Hulu, reported a quarterly operating loss of $19 million, which was smaller than its loss of $505 million a year earlier. Revenue climbed 15% to $5.81 billion.
Content sales/licensing and Other reported $254 million in operating income, helped by the strong performance of Inside Out 2 at movie theaters.
Disney now anticipates full-year adjusted earnings per share growth of 30%.
