Disney Returns to Profit With Streaming Success

The Walt Disney Co. has returned to profitability in the third quarter, thanks in part to Inside Out 2's strong performance in theaters. For the period that closed June 29, Disney reported earnings of $2.62 billion, or $1.43 per share, compared to a $460 million loss a year prior. Excluding one-time gains, earnings were $1.39 per share, exceeding analysts' prediction of $1.20 per share.

Disney's revenue grew 4% to $23.16 billion, surpassing Wall Street's estimate of $22.91 billion. Operating income for its entertainment segment almost tripled to $1.2 billion, largely due to robust performances from its direct-to-consumer and content sales/licensing segments. Notably, the direct-to-consumer unit, which includes Disney+ and Hulu, reported a significantly reduced quarterly loss of $19 million, compared to $505 million the previous year, with revenue up 15% to $5.81 billion.

The combined streaming businesses, which encompass Disney+, Hulu, and ESPN+, achieved profitability for the first time. Inside Out 2 significantly bolstered content sales and licensing, contributing to $254 million in operating income. Disney now anticipates 30% growth in adjusted earnings per share for the full year. Shares showed a slight uptick ahead of Wednesday's opening bell. (This story was generated by Newser's AI chatbot. Source: the AP)