Disney announces its results for the second quarter of 2019

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Disney (DIS) posted second-quarter financial results above expectations, but losses increased in the direct-to-consumer segment, as the company continues to invest to become a leader in the streaming industry. "data-reactid =" 15 "> Disney (DIS) released second-quarter financial results above consensus expectations, but losses increased in the direct-to-consumer segment, as the company continued to Investing to become a leader in the streaming industry.

The company based in Burbank, Calif., Has achieved adjusted earnings of $ 1.61 per share for a business turnover of $ 14.92 billion. According to forecasts by Bloomberg, Disney is expected to generate an adjusted profit of 1.57 USD per share for a turnover of 14.54 billion USD for the three months ended in March, according to Bloomberg estimates.

Disney shares climbed 1.63% to $ 137.25 each at 4:11 pm ET.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "In the quarter of last year,& nbsp; Disney achieved adjusted earnings of $ 1.84 per share for a turnover of $ 14.55 billion. Analysts were anticipating a year-over-year decline in earnings, largely due to Disney's acquisition of 21st Century Fox, which closed in March, and the imminent launch of the Disney + streaming service. society. "Data-reactid =" 18 "> In the 2005 quarter, Disney posted adjusted earnings of $ 1.84 per share for revenue of $ 14.55 billion, with analysts anticipating lower year-over-year results. the other, following the acquisition by Disney of 21st Century Fox's assets, closed in March, and launch of the company's Disney + streaming service.

Both projects were considered long-term bets aimed at preserving Disney's dominant position in the entertainment industry. The dynamism of the street on Disney, even among its heavy investments in the short term, has been reflected in a stock price up 23% since the beginning of the year, against a rise of 16% for the S & P 500.

However, the development of Disney +, as well as its other streaming services, ESPN + and Hulu, weighed on the company's results. Management said in April not expect a Disney + profitability before 2024. During its second fiscal quarter ending in March, Disney more than doubled its operating losses to reach 393 million dollars in its direct-to-consumer segment, where Disney + is hosted. Sales in this sector increased 15% to $ 955 million.

At the same time, the operating profit of Disney's largest commercial unit, cable networks, grew 2% year-over-year to $ 1.76 billion. Operating profit for amusement parks increased 15% to $ 1.5 billion. Operating income for the entertainment studio sector was $ 534 million, down 39%, but Disney explained that this was due to difficult comparisons in the last quarter of the year, when success "Black Panther" and "Star Wars: The Last Jedi" were still in publication. theaters.

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Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" Tuesday's report encapsulates the first quarter with the film of Fox and The Acquisition has allowed the "Mouse House" to have an expanded content library as it attempts to create a streaming service to compete with Netflix (NFLX"data-reactid =" 33 "> Tuesday's report summarizes the first quarter with Fox's film and television assets integrated into Disney's activities, providing the" house mouse "with an extended content library to streaming service to compete with Netflix (NFLX) and other major media players.

<p class = "canvas-atom-text-canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "" The positive response to our direct response to the strategy of has been gratifying and the integration of our 21st Century Fox business strengthens our confidence in our ability to build on decades of iconic stories and the powerful creative forces of society as a whole. offer customers an extraordinary value proposition, "Disney CEO Bob Iger & nbsp;said in a statement."data-reactid =" 34 ">" The positive reaction to our strategy of direct communication with the consumer has been gratifying and the integration of the activities acquired from 21st Century Fox only increases our confidence in our ability to take advantage of decades of iconic stories. and the powerful creative engines of the entire company to offer consumers an extraordinary value proposition, "said Disney General Manager Bob Iger.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "In April, Disney revealed that Disney +& nbsp; launch November 12 for $ 6.99 per month, or $ 69.99 a year, with a competitive price of $ 8.99 per month from Netflix & & nbsp;Basic plan.& nbsp; The announcement comes just weeks after Apple unveiled its own streaming service, Apple TV +, whose price details have not yet been released. "data-reactid =" 35 "> In April, Disney revealed that Disney + would be launched on November 12 for $ 6.99 per month, or $ 69.99 per year, the package is offered competitively compared Netflix's Basic $ 8.99 per month package, announced just weeks after Apple launched its own streaming service, Apple TV +, pricing details still to be released.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Disney's management said on its day of Investor in April that Disney + expects between 60 and 90 million global subscribers to Disney + in the next five years.Netflix left its March quarter& nbsp; with 148.86 million members worldwide paid in streaming, although the pure-play broadcast company has more than two decades. "data-reactid =" 36 "> Disney's management announced during its investor day in April that it expects between 60 and 90 million global subscribers to Disney + over the next five years, As a comparison, Netflix rolled out of its March quarter with 148.86 million global streaming subscribers – although the pure-play broadcast company is more than two decades old.

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<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Emily McCormick is a journalist for Yahoo Finance. Follow her on Twitter: @emily_mcck"data-reactid =" 38 ">Emily McCormick is a journalist for Yahoo Finance. Follow her on Twitter: @emily_mcck

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