Disney Surpasses Fiscal Q2 Earnings Expectations

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Streaming and Subscribers

The entertainment streaming segment, excluding ESPN+, saw a 13% revenue increase to $5.64 billion, with an operating income shift from a $587 million loss last year to a $47 million gain this quarter. This was attributed to a rise in Disney+ subscribers and a higher average revenue per user. Disney+ Core’s subscriber count rose to 117.6 million, while Hulu’s subscribers increased slightly to 50.2 million. However, ESPN+ experienced a decline in subscribers by 2%.

Parks and Experiences Growth

The U.S. parks and experiences sector witnessed a 7% revenue rise to $5.96 billion, while international sales surged 29% to $1.52 billion. This growth was driven by increased attendance and higher pricing at the Hong Kong Disneyland Resort, emphasizing Disney’s recovery in physical experience spaces post-pandemic.

Contrasting with the streaming success, Disney’s traditional TV business faced challenges, particularly with ESPN. Despite a revenue rise by 3% to $4.21 billion, operating income for ESPN dropped by 9% due to lower advertising revenue, declining cable subscribers, and increased costs linked to broadcasting the College Football Playoff.

Market Forecast

Looking forward, Disney’s strategic focus on streamlining its streaming operations and enhancing its experiences sector might provide a bullish outlook for the company’s stock in the short term. However, the ongoing struggles in its traditional TV business could temper this optimism unless significant adjustments are made.



This article was originally published by a www.fxempire.com

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