The Walt Disney Company has reported a strong financial performance for its third fiscal quarter, with its streaming business achieving profitability for the first time. The company’s net income reached $2.62 billion, a remarkable turnaround from the $460 million loss reported in the same period last year.Disney’s streaming services, which include Disney+, Hulu, and ESPN+, reported an operating income of $47 million, compared to a $512 million loss in the previous year. This milestone was achieved a quarter ahead of the company’s previous guidance. Disney+ subscribers grew by 1% to 118.3 million, while Hulu subscribers increased by 2% to 51.1 million.Despite this success, Disney has announced price increases for its streaming services. The ad-free Disney+ tier will increase to $15.99 per month starting October 17, 2024, more than double its original price in 2019. The ad-supported subscription will cost $9.99 per month, up from the current $7.99.While the streaming and entertainment segments showed strong performance, Disney’s theme park business faced challenges. The U.S. theme park operating income decreased by 6%, affected by inflation, increased technology spending, and reduced consumer demand. However, international park operating income increased by 2%.Disney CEO Bob Iger expressed satisfaction with the results, stating, ‘This was a strong quarter for Disney, driven by excellent results in our Entertainment segment both at the box office and in DTC, as we achieved profitability across our combined streaming businesses for the first time and a quarter ahead of our previous guidance.’ The company’s overall revenue climbed 4% to $23.16 billion, beating Wall Street’s estimate. Disney now anticipates full-year adjusted earnings per share growth of 30%.
Key points
- Disney’s streaming business turned a profit for the first time, with $47 million in operating income.
- The company reported a net income of $2.
- Disney announced price increases for its streaming services, with the ad-free Disney+ tier rising to $15.
- Theme park business faced challenges, with U.
62 billion, a significant improvement from last year’s $460 million loss.
99 per month.
S.
park operating income decreasing by 6%.
Contradictions👾There are slight discrepancies in the reported streaming profit figures.
Some sources report $47 million, while others mention $19 million.
This could be due to different accounting methods or the inclusion/exclusion of certain streaming services.
