The Walt Disney Co. beat Wall Street expectations on adjusted earnings and revenue in the fiscal fourth quarter.
The Burbank entertainment and media giant reported on Thursday adjusted net income of $1 billion ($1.07 a share) for the quarter ending Sept. 28, compared with net income of $2.3. billion ($1.48) in the same period a year earlier. Revenue increased 34 percent to $19.1 billion.
Analysts on average expected earnings of 95 cents on revenue of $19 billion, according to Thomson Financial Network.
Disney Chief Executive Robert Iger said the company’s solid fourth quarter results reflect the ongoing strength of its brands and businesses.
“We’ve spent the last few years completely transforming The Walt Disney Company to focus the resources and immense creativity across the entire company on delivering an extraordinary direct-to-consumer experience, and we’re excited for the launch of Disney+ on November 12,” Iger said in a statement.
Revenues increased in all four of the business divisions, led by Direct-to-Consumer & International with an increase of 312 percent to $3.4 billion from the $825 million in the fourth quarter of the prior year. That division, however, widened its operating loss by 118 percent to $740 million, which Disney attributed to costs associated with the upcoming launch of Disney+, its ongoing investment in ESPN+ which launched in April 2018 and the consolidation of streaming service Hulu.
Studio entertainment revenue went up by 52 percent to $3.3 billion and operating income increased by 79 percent to $1.1 billion during the quarter. The latter, however, was offset by poor box office performance of films the company picked up in its acquisition of Twenty-First Century Fox Inc., which was subsequently renamed TFCF Corp.
Media Networks revenue increased by 22 percent to $6.5 billion, while Parks, Experiences and Products saw a boost of 8 percent to $6.7 billion.
Disney reported its quarterly earnings after the market closed. Its shares (DIS) closed up $1.69, or 1.3 percent, to $132.96 on the New York Stock Exchange.