Fiscal Year Q3 Streaming Profit of $47 Million
Turning a Profit One Quarter Ahead of Initial Plan
The Walt Disney Company (hereinafter Disney) has achieved a quarterly profit in its streaming business segment for the first time.
On the 7th (local time), Disney announced in its fiscal third-quarter earnings report that streaming segment revenue reached $6.38 billion, with an operating profit of $47 million. The profit target was achieved one quarter ahead of schedule.
In the second quarter of last year, Disney's streaming segment operating loss amounted to $512 million. Since launching Disney+ in November 2019 and entering the streaming market, Disney has accumulated losses exceeding $11 billion. Considering this situation, the turnaround to profitability in the streaming segment is seen as highly symbolic.
Disney Chief Financial Officer (CFO) Hugh Johnston stated in a conference call, "We have made significant progress," adding, "Not long ago, we were losing $1 billion per quarter."
Additionally, Disney's experiential segment, which includes theme parks and cruise lines, recorded an operating profit of $2.22 billion, down 3.3% year-over-year. Revenue was slightly up year-over-year at $8.39 billion. Disney expects continued weak performance in the experiential segment in the fourth quarter due to slowing demand in U.S. theme parks and China.
Disney's total revenue for the fiscal third quarter was $23.16 billion, with adjusted earnings per share (EPS) of $1.39, exceeding market expectations. Earlier, market research firm LSEG had forecast Disney to report revenue of $23.07 billion and adjusted EPS of $1.19.
Meanwhile, on the New York Stock Exchange, Disney's shares were down 2.82% as of 12:47 PM compared to the previous day.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
