Walt Disney Co. (DIS) has reported financial results that topped Wall Street forecasts as its combined streaming services turned a profit for the first time.
The entertainment giant announced earnings per share (EPS) of $1.39 U.S., which was ahead of the $1.19 U.S. expected among analysts who track the company’s progress.
For what was Disney’s fiscal third quarter, the company posted revenue of $23.16 billion U.S., which beat consensus estimates of $23.07 billion U.S.
The better-than-expected results were attributed to the company’s entertainment unit, particularly its streaming platforms.
Disney’s combined streaming business, which includes Disney+, Hulu and ESPN+, turned a profit for the very first time during the quarter.
The combined streaming platforms earned an operating profit of $47 million U.S. compared to a loss of $512 million U.S. a year earlier.
On an individual basis, Disney+ and Hulu were each profitable while ESPN+ recorded a loss of $19 million U.S.
Management at Disney has focused on making streaming profitable as the company’s traditional TV business that includes the ABC network loses customers and advertising dollars.
Making streaming profitable took on added urgency at Disney following a costly strike last year by Hollywood actors and writers.
The number of subscribers to Disney+ grew 1% to 118.3 million in the quarter, while total subscribers at Hulu increased 2% to 51.1 million.
Revenue for the entertainment segment that includes streaming rose 4% year-over-year to $10.58 billion U.S. due largely to price increases. Revenue from traditional TV declined 7%.
Disney’s total revenue in the quarter increased 4% to $23.16 billion U.S. However, the company’s theme parks saw declining visits during the quarter.
Operating income for the U.S. theme parks was down 6%, while international parks operating income was up 2%. The company attributed the slump to higher costs driven by inflation.
Disney’s parks division is seen as an increasingly important profit driver and the company has announced plans to spend $60 billion U.S. to upgrade and improve its theme parks around the world over the coming decade.
The stock of Walt Disney Co. has risen 4% in the last 12 months to trade at $89.97 U.S. per share.
