Disney reported a profitable third quarter, driven by its streaming services making money for the first time and the strong performance of “Inside Out 2” in theaters. Operating income for the entertainment segment nearly tripled to $1.2 billion, with better performances from direct-to-consumer and content sales/licensing segments.
The direct-to-consumer business, including Disney+ and Hulu, reported a quarterly operating loss of $19 million, significantly lower than the $505 million loss a year earlier. Revenue for this segment climbed 15% to $5.81 billion. Overall, Disney earned $2.62 billion, or $1.43 per share, compared to a loss of $460 million, or 25 cents per share, a year ago. Stripping out one-time gains, earnings were $1.39 per share, beating analysts’ expectations.
The combined streaming businesses, including Disney+, Hulu, and ESPN+, achieved profitability for the first time. The Experiences division, which includes theme parks, saw a 3% revenue increase in the third quarter. However, Disney cautioned that the moderation in demand at domestic parks could continue for the next few quarters, impacting fourth-quarter Experiences operating income. Despite this, Disney anticipates full-year adjusted earnings per share growth of 30%.
