Walt Disney Co.’s earnings surpassed analysts’ expectations for its fiscal fourth quarter, ahead of the launch of its streaming platform Disney+.
The media behemoth’s adjusted earnings for the three months ending in September, came in at $1.07 per share, beating the Street estimates of 95 cents per share. The figure, however, is -27.7% lower from the same period last year.
Group revenues for the quarter surged +34% to $19.01 billion, but fell slightly below analysts' forecasts of $19.04 billion.
The company’s media networks' quarterly revenue jumped +22% year-over-year, but the segment’s operating income fell -3%. Parks/experiences revenue rose +8% to $6.7 billion (topping the consensus estimate of $6.56 billion), and the segment’s operating income increased +17%. Studio entertainment revenues and operating income were up by +52% and +79% respectively.
The company’s much-awaited video streaming service Disney will launch on November 12. The service will allow users to pay $6.99 per month for the entire Disney content library, or $12.99 for a bundle that includes ESPN and Hulu. The platform will launch in western Europe, and the United Kingdom, on March 31. Disney+ would be yet another entrant in the fiercely competitive streaming industry which includes players like Netflix and Amazon Prime Video.