Inside Out 2 effect on Disney’s accounts
Better quarterly than expected for Disney, supported by the success of the Pixar animated film despite the decline in the parks division. Streaming improves and makes a profit for the first time
The film “Inside Out 2” makes Disney's quarterly accounts shine.
Walt Disney Company closed the quarter with revenues of 23.2 billion dollars, up from 22.3 billion in the corresponding quarter and with a pre-tax profit of 3.1 billion against a loss last year of 0.1 billion. Earnings per share grew to $1.43. This is the third quarter of the fiscal year for the company.
The results beat Wall Street expectations, buoyed by the success of Pixar's animated film “Inside Out 2,” which helped overcome a drop in theme park profits, Reuters reports. The Bob Iger-led company warned that slowing consumer demand at its US theme parks could continue next year.
All the details.
REVENUES AND PROFITS ABOVE EXPECTATIONS
The Mickey Mouse entertainment giant closed the third quarter of the financial year (ending June 29, 2024) with adjusted earnings per share of $1.39, exceeding the previous year's figure of $1.03 and company estimates. analysts $1.19, while revenue rose 4% to $23.2 billion, beating forecasts of $23.1 billion.
INSIDE OUT EFFECT 2
Inside Out 2's record-breaking box office performance boosted third-quarter earnings, reports the Financial Times .
The sequel to the Pixar film totaled $1.6 billion in global ticket sales to become the highest-grossing animated film of all time, and “Deadpool & Wolverine,” which debuted in the current quarter, grossed over 850 million dollars.
The Entertainment division, which includes its film, television and streaming businesses, reported operating income of $1.2 billion in the quarter.
FIRST PROFIT FOR STREAMING
Additionally, Mickey Mouse's combined streaming businesses of Disney+, Hulu and ESPN+ turned a profit for the first time in the period and beat Disney's previous forecasts.
The combined streaming business posted an operating profit of $47 million compared to a loss of $512 million in the same quarter last year. However, without ESPN+, the direct-to-consumer streaming unit posted a loss of $19 million.
THE WORDS OF CEO IGER
“Our performance in the third quarter demonstrates the progress we have made across our four strategic priorities across our creative studios, streaming, sports and experiences,” said CEO Robert Iger. “This was a strong quarter for Disney, driven by strong results. in our Entertainment segment at both the box office and DTC, as we achieved profitability in our combined streaming businesses for the first time and a quarter earlier than our previous guidance.”
WHAT HAPPENS TO THE PARKS
However, while Disney's entertainment and sports divisions drove gains, the US theme park business was affected by slowing consumer demand and inflation, CNBC reports.
“The portfolio is performing well,” said Disney CFO Hugh Johnston. “Yes, there is weakness in national parks, but entertainment division profits tripled in the quarter.”
FORECASTS
Finally, Disney says it is on track to improve profitability of the combined streaming businesses in the fourth quarter, with Entertainment DTC and ESPN+ expected to be profitable in the quarter. “We are confident in our ability to continue to drive earnings growth through our collection of unique and powerful assets,” Iger concluded.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/effetto-inside-out-2-sui-conti-disney/ on Thu, 08 Aug 2024 06:02:27 +0000.