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Walt Disney Reports Mixed Financial Results




The Walt Disney Co. (DIS) has reported mixed financial results as it continues to reduce losses at its streaming services.

The entertainment giant announced earnings per share (EPS) of $1.21 U.S. for what was its fiscal second quarter, ahead of expectations that called for $1.10 U.S.

However, revenue in the period amounted to $22.08 billion U.S., which was slightly below the $22.11 billion U.S. that was estimated on Wall Street.

Despite the mixed results, Disney said that its operating income rose 17% as its Disney+ and Hulu streaming services turned a profit in the quarter for the very first time.

When combined with ESPN+, the streaming businesses lost $18 million U.S. during the quarter. However, that was much better than a loss of $659 million U.S. a year earlier.

Management credited increased Disney+ subscribers and higher average revenue per user for the decent financial results.

Disney+ subscribers grew by more than six million in the quarter to 117.6 million global customers. Hulu subscribers grew 1% to 50.2 million while ESPN+ subscribers fell 2% to 24.8 million.

The parks and experiences division at Disney saw revenue rise 7% to $5.96 billion U.S., with international sales increasing 29% to $1.52 billion U.S. on growing attendance and higher prices at the Disneyland resort based in Hong Kong.

On a down note, Disney’s legacy television business continues to decline as consumers drop their cable TV subscriptions.

Management said it is grappling with lower advertising revenue, a decline in cable subscribers, and higher programming costs at its television unit.

In terms of films, Disney reported a 40% decrease in box office receipts to $1.39 billion U.S. in the quarter as it didn’t release any blockbuster movies in recent months.

The stock of Disney fell 5% on news of the latest financial results. In the past 12 months, the company’s share price has increased 13% to trade at $116.47 U.S. per share.



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