Disney turns profit in third quarter as streaming boom takes hold

The Walt Disney Co. swung from a loss of $153 million in the third quarter last year to a profit of $2.842 million in the fiscal third quarter ended June 29 of this year.

Sales rose 4% to $23.2 billion, slightly ahead of expectations for $23.1 billion, according to the company’s results released Wednesday.

One of the novelties of this quarter is that this is the first time stream media (Disney+, gourd The company said it had a profit in the fourth quarter, compared with a loss of $512 million in the same quarter. The profits came a quarter early, as Walt Disney only forecast profits for the division in the fiscal fourth quarter.

Total Disney+ subscribers grew 1% to 118.3 million, while Hulu subscribers grew 2% to 51.1 million. Entertainment division revenue grew 4% to $10.58 billion

The good results were driven by the release of the film “Inside Out 2”, which has grossed $1.6 billion worldwide since June, and the release of the film “Deadpool vs. Wolverine”, which has grossed $850 million. Tickets can be purchased for a few dollars in just two weeks.

“After several years of failures and quiet successes, Disney has now released the highest-grossing animated film of all time in a month and a half and achieved the highest opening box office for an R-rated film in 14 years,” Reuters quoted MoffettNathanson media analyst Robert Fishman as saying.

In turn, the company’s operating profit increased 19% from the same period last year to $4.2 billion. The profit was driven by positive performance flow.

However, it wasn’t all smooth sailing for Disney this quarter, as profits from its experience business, which includes parks and consumer products and sports, fell 3% to $2.22 million.

The company said in a statement that slowing demand in the third quarter was likely to affect subsequent quarters, and that it expected profit at the division to fall next quarter from a year earlier.

“Our third quarter results demonstrate the progress we are making across our four creative studio strategic priorities,” said CEO Bob Iger. stream mediamovement and experience”.

“We remain confident in our ability to continue to drive profitable growth through our unique and powerful collection of assets,” the CEO stressed.