Time: 2024-08-07
Disney , listed as NYSE : DIS , reported its fiscal third - quarter earnings , surpassing analyst expectations as its streaming businesses , including Disney+ , Hulu , and ESPN+ , turned a profit earlier than anticipated . The company reported earnings per share of .39 , adjusted revenue of 3.16 billion , and a total segment operating income increase of 19 % to .225 billion , with positive results in its entertainment unit.
Disney 's combined streaming business posted an operating profit of 7 million , a significant improvement from the 12 million loss in the same quarter last year . The company revised its reporting structure , now including ESPN under its sports unit and Disney+ and Hulu as part of the direct - to - consumer entertainment segment . Disney aims to enhance profitability in its streaming services amidst a decline in traditional TV customers.
The company noted a successful quarter with adjusted earnings per share of .39 , exceeding analyst estimates , and revenue reaching 3.2 billion . Despite challenges in its parks division and a moderation in consumer demand , Disney remains optimistic about its future trajectory , emphasizing plans for margin improvement in the coming years.
Disney faced difficulties in its parks business , with a 6 % decrease in domestic operating income . The company expects a decline in experiences segment operating income for the fourth quarter due to ongoing demand moderation . Despite these challenges , Disney remains confident in the strong demand for its cruises and other offerings.
Additionally , Disney 's linear business experienced a 7 % revenue drop , primarily driven by reduced advertising and affiliate revenue as more consumers opt for streaming services . However , ESPN 's domestic operating income increased by 1 % due to growth in advertising and subscription revenue.
In response to changing consumer preferences , Disney announced price hikes for its Disney+ and Hulu plans , set to take effect in October . The company continues to focus on sports streaming initiatives , including a joint venture partnership with Fox and Warner Bros. Discovery , as well as a separate sports streaming platform for ESPN.
Disney 's theatrical power remains strong , with successful film releases contributing to a surge in content sales and licensing income . The company is set to lead the box office with upcoming releases like " Moana 2 " and " Mufasa : The Lion King . " Despite challenges in certain business segments , Disney 's overall performance in Q3 demonstrates resilience and strategic growth initiatives.
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