Proactive Investors - Walt Disney Co (NYSE:DIS, ETR:WDP) raised its full-year earnings outlook after quarterly results mostly came in higher Wall Street forecasts as parts of its streaming business turned a first profit.
Revenues for the second quarter of the House of Mouse's fiscal year increased to $22.08 billion from $21.8 billion a year earlier, roughly in line with analyst expectations.
Pre-tax income tumbled 69% to $657 million due to goodwill impairments of $2,052 million to its Star India and entertainment networks.
Underlying profits were positive though, with segment operating income up 17% to $3.85 billion and adjusted earnings per share of $1.21 beating the Street's $1.10 average estimate.
Guidance for full-year adjusted earnings growth was raised to 25%, up from 20% before.
The Disney+ streaming service was boosted by a six million increase in subscribers and an increase in average revenue per user, meaning the direct-to-consumer (D2C) entertainment streaming business broke into a maiden profit of $47 million. When including ESPN+ sports, the combined streaming arm made a loss, though it was much smaller than a year ago.
CEO Bob Iger said the rise in adjusted EPS of 30% compared to the prior year "demonstrates we are delivering on our strategic priorities and building for the future".
He acknowledged that results were "driven in large" part by streaming and by the Experiences arm's Walt Disney World resort and Disney cruises, partly offset by lower results at the Disneyland resort.
Disney remains "on track" to achieve profitability in the combined streaming businesses in the fourth quarter of the year.
"Looking at our company as a whole, it’s clear that the turnaround and growth initiatives we set in motion last year have continued to yield positive results," he said, hailing cinematic releases coming in the next few months, television shows "resonating" and "turbocharging" growth in Experiences with strategic investments.
Original show 'Shogun' has been highly rated and well watched in the past quarter, but data from Nielsen shows the Australian animated kids series 'Bluey' has been the most watched show on US streaming networks in 2024 so far.