Disney earnings top analyst estimates as streaming nearly breaks even
Disney reported fiscal second-quarter earnings Tuesday that beat analyst estimates after narrowing streaming losses. Revenue was in line with expectations.
Disney’s total segment operating income jumped 17% as Disney’s entertainment streaming applications — Disney+ and Hulu — turned a profit in the quarter for the first time. When combined with ESPN+, the streaming businesses lost $18 million in the quarter, much narrower than the $659 million loss the division reported a year earlier.
Entertainment streaming revenue (excluding ESPN+) rose 13% in the quarter to $5.64 billion, and operating income was $47 million after a loss of $587 million a year prior. Disney credited increased Disney+ subscribers and higher average revenue per user for the gains.
Disney+ Core subscribers increased by more than 6 million in the second quarter to 117.6 million global customers. Total Hulu subscribers grew 1% to 50.2 million. ESPN+ subscribers fell 2% to 24.8 million.
$Disney(DIS.US$ Disney Q2 FY24 (ending in March):
• Revenue +1% Y/Y to $22.1B ($50M miss).
• Non-GAAP EPS $1.21 ($0.10 beat).
Segment operating margin:
Entertainment: 8% (+4pp Y/Y).
Disney’s total segment operating income jumped 17% as Disney’s entertainment streaming applications — Disney+ and Hulu — turned a profit in the quarter for the first time. When combined with ESPN+, the streaming businesses lost $18 million in the quarter, much narrower than the $659 million loss the division reported a year earlier.
Entertainment streaming revenue (excluding ESPN+) rose 13% in the quarter to $5.64 billion, and operating income was $47 million after a loss of $587 million a year prior. Disney credited increased Disney+ subscribers and higher average revenue per user for the gains.
Disney+ Core subscribers increased by more than 6 million in the second quarter to 117.6 million global customers. Total Hulu subscribers grew 1% to 50.2 million. ESPN+ subscribers fell 2% to 24.8 million.
$Disney(DIS.US$ Disney Q2 FY24 (ending in March):
• Revenue +1% Y/Y to $22.1B ($50M miss).
• Non-GAAP EPS $1.21 ($0.10 beat).
Segment operating margin:
Entertainment: 8% (+4pp Y/Y).
Sports: 18% (-1pp Y/Y).
Experience: 27% (+1pp Y/Y).
FY24 EPS guidance +25% Y/Y (prev. 20%).
Experience: 27% (+1pp Y/Y).
FY24 EPS guidance +25% Y/Y (prev. 20%).
“Our results were driven in large part by our Experiences segment as well as our streaming business,” Disney Chief Executive Officer Bob Iger said in a statement. “Importantly, entertainment streaming was profitable for the quarter, and we remain on track to achieve profitability in our combined streaming businesses in Q4.”
U.S. parks and experiences revenue rose 7% to $5.96 billion, and international sales soared 29% to $1.52 billion on increased attendance and higher prices at Hong Kong Disneyland Resort.
Disney reported a loss attributable to the company of $20 million, or 1 cent per share, compared with a profit of $1.27 billion, or 69 cents per share in the year-earlier period. Adjusting for restructuring and impairment charges, among other things, Disney reported a profit of $1.21 per share.
Disney shares fell about 5% in premarket trading Tuesday.
U.S. parks and experiences revenue rose 7% to $5.96 billion, and international sales soared 29% to $1.52 billion on increased attendance and higher prices at Hong Kong Disneyland Resort.
Disney reported a loss attributable to the company of $20 million, or 1 cent per share, compared with a profit of $1.27 billion, or 69 cents per share in the year-earlier period. Adjusting for restructuring and impairment charges, among other things, Disney reported a profit of $1.21 per share.
Disney shares fell about 5% in premarket trading Tuesday.
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