Disney
reported its fiscal third-quarter earnings Wednesday, topping analyst estimates as its combined streaming businesses turned a profit earlier than expected.
Here is what Disney reported compared with what Wall Street expected, according to LSEG:
Earnings per share: $1.39 adjusted vs. $1.19 expected
Revenue: $23.16 billion vs. $23.07 billion expected
The company’s total segment operating income increased 19% to $4.225 billion compared with the same period last year, led by the positive results for Disney’s entertainment unit, particularly streaming.
Disney’s combined streaming business, which consists of Disney+, Hulu and ESPN+, together turned a profit for the first time — and it happened a quarter earlier than the company had expected.
The combined streaming business posted an operating profit of $47 million compared with a loss of $512 million in the same quarter last year. However, without ESPN+, the direct-to-consumer streaming unit reported a loss of $19 million.
Meanwhile, in May, Disney highlighted a slightly different metric, noting that Disney+ and Hulu together turned a profit, but when combined with ESPN+, the streaming businesses suffered a loss.
Disney recently changed how it reports its segments, with ESPN falling under its sports unit, and Disney+ and Hulu being counted as part of the direct-to-consumer entertainment segment. Disney and its peers have been focused on streaming reaching profitability as the traditional TV business bleeds customers.
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