(Reuters) – Walt Disney Co’s theme parks lifted quarterly earnings previous Wall Street targets on Wednesday, serving to offset large investments to help the media and leisure firm’s bid to attract audiences to streaming media.
FILE PHOTO: The entrance to Walt Disney studios is seen in Burbank, California, U.S. August 6, 2018. REUTERS/Lucy Nicholson/File Photo
Shares of Disney rose 1.5 % to $137 in after-hours buying and selling.
“Avengers: Endgame”, the top of a decade-long superhero sequence with $2.2 billion in field workplace gross sales worldwide, will stream solely on Disney+ beginning Dec. 11, the corporate announced.
Growth at Disney parks within the United States boosted outcomes above analyst expectations. From January to March, Disney reported adjusted earnings per share of $1.61, forward of analyst estimates of $1.58, in response to IBES knowledge from Refinitiv.
Revenue rose three % to $14.92 billion. Analysts had been anticipating a small decline.
Disney is making an attempt to rework from a cable TV chief to a streaming media powerhouse that, like Netflix Inc, sells subscriptions on to customers. Costs to construct digital providers will weigh on income for a number of years, the corporate has mentioned.
Its largest streaming guess, the family-oriented Disney+, is about to launch in November. The firm instructed analysts in April that it expects Disney+ to realize profitability in fiscal 2024.
The just-ended quarter mirrored the acquisition of movie and TV belongings from 21st Century Fox, which introduced Disney extra content material for its streaming future.
For the quarter, the direct-to-consumer and worldwide unit recorded a lack of $393 million.
Media networks, a division that features ESPN and ABC, reported $2.2 billion in working earnings for the quarter.
In the theme park unit, internet earnings hit $1.5 billion as extra guests confirmed up at Walt Disney World in Florida and at Hong Kong Disneyland, and occupied resort nights elevated.
“Increased ticket prices haven’t put visitors off, and hotels continue to be a major driver of additional spending,” mentioned Nicholas Hyett, fairness analyst at Hargreaves Lansdown. “It’s easy to get caught up in the hype surrounding new films … but it’s the less glamorous Media Networks and Parks that pay the lion’s share of the bills.”
The film studio reported revenue of $534 million, lifted by “Captain Marvel,” which was a worldwide hit however didn’t attain the extent of “Black Panther” and “Star Wars: The Last Jedi” a 12 months earlier.
Reporting by Lisa Richwine in Los Angeles and Vibhuti Sharma in Bengaluru; Editing by Anil D’Silva and Lisa Shumaker