Disney shares jump after profits top estimates
Reuters
Walt Disney (NYSE:DIS) has reported better-than-anticipated income and revenue in its fourth quarter, boosting shares in the media giant by more than 7% in early dealmaking on Thursday , News.az reports citing Investing.
The company was bolstered in particular by strength at its key streaming business, which helped power a 14% jump in revenue at its entertainment segment versus the year-ago period to $10.83 billion.
Disney has targeted growth at its offerings like Disney+ and Hulu despite fierce competition among streaming video services. The number of Disney+ subscribers rose by 4% compared to the prior quarter to 122.7 million, ahead of Wall Street expectations of 119.85 million. Paying customers at Hulu and the group's Disney+ Hotstar unit also topped projections.
When folding in its ESPN+ sports service, overall streaming operating profit came in at $321 million, rebounding from a loss of $387 million a year earlier.
Operating income at the entertainment division also more than doubled to $1.07 billion thanks in part to the box office success of its Marvel's summer superhero movie "Deadpool & Wolverine."
The result helped mitigate the impact of a 5.7% dip in operating profit at Disney's experiences division to $1.66 billion, which includes its theme parks and cruise ships. Following an initial post-pandemic surge in demand, the business has been hit by many Americans choosing to rein in spending in response to cost-of-living constraints.
In a statement, CEO Bob Iger, who returned to the helm of Disney in 2022 promising to carry out a sweeping turnaround of the business through cost cuts and a revamp of its film and TV studios, said the overhaul has seen "significant progress."
The company was bolstered in particular by strength at its key streaming business, which helped power a 14% jump in revenue at its entertainment segment versus the year-ago period to $10.83 billion.
Disney has targeted growth at its offerings like Disney+ and Hulu despite fierce competition among streaming video services. The number of Disney+ subscribers rose by 4% compared to the prior quarter to 122.7 million, ahead of Wall Street expectations of 119.85 million. Paying customers at Hulu and the group's Disney+ Hotstar unit also topped projections.
When folding in its ESPN+ sports service, overall streaming operating profit came in at $321 million, rebounding from a loss of $387 million a year earlier.
Operating income at the entertainment division also more than doubled to $1.07 billion thanks in part to the box office success of its Marvel's summer superhero movie "Deadpool & Wolverine."
The result helped mitigate the impact of a 5.7% dip in operating profit at Disney's experiences division to $1.66 billion, which includes its theme parks and cruise ships. Following an initial post-pandemic surge in demand, the business has been hit by many Americans choosing to rein in spending in response to cost-of-living constraints.
In a statement, CEO Bob Iger, who returned to the helm of Disney in 2022 promising to carry out a sweeping turnaround of the business through cost cuts and a revamp of its film and TV studios, said the overhaul has seen "significant progress."
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