Walt Disney Revenue Boosted by Summer Movies -- Update
November 07 2019 - 5:33PM
Dow Jones News
By Allison Prang
Walt Disney Co. reported a 34% jump in revenue in the latest
quarter, boosted by the box-office performance of "The Lion King,"
"Toy Story 4" and "Aladdin."
Shares of Disney rose 4.5% to $139 in after-hours trading
Thursday as the company's earnings fell but still beat analysts
expectations.
Disney's profit slumped by more than half to $1.05 billion, hurt
by a 50% increase in costs and expenses. Excluding certain items,
per-share earnings were $1.07 a share, higher than the 94 cents a
share expected by analysts polled by FactSet.
Total revenue increased to $19.1 billion, slightly missing
analysts' consensus estimate. Revenue jumped 22% to $6.5 billion at
the company's media networks and 52% to $3.3 billion at its studio
entertainment division.
Operating income for Disney's studio entertainment division rose
79%. This year's movies compared with films like the "Ant-Man" and
"Incredibles 2" in the year-ago quarter.
Disney's direct-to-consumer and international division reported
an operating loss that more than doubled from a year earlier.
Disney said that was from investments in Disney+ and ESPN+, along
with the consolidation of Hulu.
Disney earlier this year bought various assets from Fox for
$71.3 billion as it makes the move into streaming. Disney is
launching its Disney+ streaming service next week, adding another
media player in the streaming race along with Netflix, HBO and the
service in which Disney already owns a large stake, Hulu.
Separately, Amazon.com Inc. reached a deal with Disney to carry
its Disney+ streaming-video service on Fire TV devices, according
to people familiar with the matter.
In the September quarter, Disney recorded debt-related expenses
and higher interest costs tied to its acquisition of the Fox
assets. The company also had $314 million in restructuring charges
related to integrating those assets, which Disney said were mainly
for severance.
Write to Allison Prang at allison.prang@wsj.com
(END) Dow Jones Newswires
November 07, 2019 17:18 ET (22:18 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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