Disney (DIS) beat analyst expectations with its third-quarter results, being above the expected figures for revenue and earnings. This marked a return to profit from previous losses and comes as the entertainment giant plans to increase the price of its streaming service.
Disney Makes Its First Streaming Profit
Pre-tax profit climbed to $3.1bn for Q3, following the $134m loss posted last year. This quarter was the first time the Disney streaming business has returned a profit, with the successful Inside Out 2 movie contributing to a strong quarter.
A big jump in operating income for the company’s entertainment division saw it reach $1.2bn, three times higher than in 2023. That brought an end to a run of four successive quarters where DIS had failed to achieve expected revenue. The company now puts adjusted earnings per share for the full year at 30% growth.
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A 3% increase in the experiences division that includes theme parks was helped by a 5% increase seen in the international parks. However, inflation concerns led to operating income in the parks in the US dropping by 6%.
Chief executive Bob Iger told shareholders:
The lower income consumer is feeling a bit of stress, the higher income consumer is travelling internationally a bit more.
He added that the entertainment business is more than offsetting this slowdown.
The next price hike for the Disney streaming service comes in mid-October. A 25% increase will affect Disney+, ESPN¨+ and Hulu. It’s not yet clear whether the prince increase will affect all regions.
