The Walt Disney Co. (DIS) has reported mixed financial results as it continues to reduce losses at its streaming services.
The entertainment giant announced earnings per share (EPS) of $1.21 U.S. for what was its fiscal second quarter, ahead of expectations that called for $1.10 U.S.
However, revenue in the period amounted to $22.08 billion U.S., which was slightly below the $22.11 billion U.S. that was estimated on Wall Street.
Despite the mixed results, Disney said that its operating income rose 17% as its Disney+ and Hulu streaming services turned a profit in the quarter for the very first time.
When combined with ESPN+, the streaming businesses lost $18 million U.S. during the quarter. However, that was much better than a loss of $659 million U.S. a year earlier.
Management credited increased Disney+ subscribers and higher average revenue per user for the decent financial results.
Disney+ subscribers grew by more than six million in the quarter to 117.6 million global customers. Hulu subscribers grew 1% to 50.2 million while ESPN+ subscribers fell 2% to 24.8 million.
The parks and experiences division at Disney saw revenue rise 7% to $5.96 billion U.S., with international sales increasing 29% to $1.52 billion U.S. on growing attendance and higher prices at the Disneyland resort based in Hong Kong.
On a down note, Disney’s legacy television business continues to decline as consumers drop their cable TV subscriptions.
Management said it is grappling with lower advertising revenue, a decline in cable subscribers, and higher programming costs at its television unit.
In terms of films, Disney reported a 40% decrease in box office receipts to $1.39 billion U.S. in the quarter as it didn’t release any blockbuster movies in recent months.
The stock of Disney fell 5% on news of the latest financial results. In the past 12 months, the company’s share price has increased 13% to trade at $116.47 U.S. per share.
