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Disney Beats Expectations as Streaming Subscriptions Increase

The Walt Disney Co. just managed to beat Wall Street estimates on earnings and revenue in its fiscal second quarter.

The Walt Disney Co. just managed to beat Wall Street estimates on earnings and revenue in its fiscal second quarter.

The Burbank entertainment and media giant reported on Wednesday an adjusted net income of $3.1 billion ($1.08 a share) for the quarter ending April 2, compared to an adjusted net income of $1.9 billion (79 cents) in the same period a year earlier. Revenue increased by 23 percent from the prior year to $19.2 billion.

Analysts on average expected earnings of $1.07 on revenue of $19 billion, according to Thomson Financial Network.

Chief Executive Bob Chapek said that the company’s strong results in the second quarter – with fantastic performance at its domestic parks and continued growth of its streaming services – shows that it is in a league of its own.

“As we look ahead to Disney’s second century, I am confident we will continue to transform entertainment by combining extraordinary storytelling with innovative technology to create an even larger, more connected and magical Disney universe for families and fans around the world,” Chapek said in a statement.

For the quarter, the Disney Plus streaming platform added 7.9 million subscribers from the previous quarter to bring its total to 137.7 million and more than 205 million total streaming subscribers to all its direct-to-consumer services, which also includes ESPN Plus and Hulu. Analysts on average expected 135 million Disney Plus subscribers and 204 million total streaming customers, according to FactSet.

Revenue for the domestic parks and experiences totaled $4.9 billion in the second quarter, compared to $1.7 billion in the same period a year earlier.

Shares of Disney (DIS) closed down $2.47 or about 2.3 percent to $105.21 on the New York Stock Exchange, on a day when the Dow Jones closed down 1 percent.

Joel Russel
Joel Russel
Joel Russell joined the Los Angeles Business Journal in 2006 as a reporter. He transferred to sister publication San Fernando Valley Business Journal in 2012 as managing editor. Since he assumed the position of editor in 2015, the Business Journal has been recognized four times as the best small-circulation tabloid business publication in the country by the Alliance of Area Business Publishers. Previously, he worked as senior editor at Hispanic Business magazine and editor of Business Mexico.

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