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Giant multimedia Walt Disney (NYSE: DIS) The results of the second fiscal quarter after the market closed on Wednesday exceeded expectations, thanks in part to the strength of its theme parks. The stock gained about 1% after trading hours.
After finalizing the acquisition of Fox Entertainment's assets, Disney reported revenues of $ 14.92 billion, up 3% from the previous year, well above estimates $ 14.39 billion in analyst consensus. Profits were also better than expected, with adjusted EPS of $ 1.61, down 13%, but higher than the $ 1.59 expected by analysts.
Disneyland's Pixar Pier at Night. Source of the image: Author.
Good results despite difficult competitions
The results of Disney's recently redeveloped operating segments have varied. Revenues from media networks were essentially stable at $ 5.5 billion. The parks, experiences and products sector grew 5% over the previous year to $ 6.2 billion, as growth in Disney theme parks drove these gains. The results were both more crowded and more popular. This is all the more impressive as the quarter suffered easter holidays, which declined in the third quarter of this year compared with the second quarter of last year.
The results for the studio entertainment sector appeared disappointing, down $ 2.1 billion from the same quarter last year, or 15%, but this requires context. Last year, Black Panther and Star Wars: The Last Jedi continues to dominate the theaters, while in the current quarter, Captain Marvel got no help from a comparable Star wars Title.
The newly introduced consumer and international direct services segment grew 15% over the previous year to reach $ 955 million. Disney pointed out that "due to the acquisition of a majority stake in Hulu at the close of the Fox acquisition, 100% of the company's operating results. for the last 10 days of March are included in its financial results.
Invest heavily for the future
The direct-to-consumer segment has also been the main drag on profitability as Disney continues to invest heavily in ESPN + (launched at the same time last year) and in Disney's upcoming debut. +. He also reported higher losses to Hulu.
CEO Bob Iger was eager to celebrate the recent success of Marvel's latest blockbuster. "We are very pleased with our second quarter results and pleased with the record-breaking success of Avengers: End of Game, which is now the second most profitable film of all time and will be broadcast exclusively on Disney + from December 11, "he said.The film will be available in theaters April 26, so that results will only be reflected in the results in the next quarter.
Disney continues the massive integration of companies acquired from Twenty-First Century Fox, while planning the launch of Disney + in November. There is a lot going on under the hood, but it's an exciting time to be a Disney investor.
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