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Disney Posts Record Q3 Profit Driven by Streaming and Parks

Disney lifted its full-year earnings outlook following stronger-than-expected park revenue growth coupled with streaming profitability.

Overview

  • Disney’s Q3 net income rose to $5.26 billion from $2.62 billion a year earlier, marking a year-over-year doubling.
  • Quarterly revenues stood at $23.65 billion, slightly below projections, as entertainment revenues edged up 1% and parks and experiences grew 8%.
  • The direct-to-consumer segment swung to a $346 million operating profit on 6% revenue growth, its first quarterly profit in the unit.
  • Disney+ reached 128 million paid subscribers after adding 1.8 million in the quarter, and Disney forecasts combined Disney+ and Hulu subscriptions to rise by over 10 million in Q4.
  • Disney struck a nonbinding deal for ESPN to acquire NFL Network, NFL Fantasy and RedZone rights with the NFL taking a 10% stake, and it lifted its full-year adjusted earnings outlook.