The Walt Disney Co. matched Wall Street expectations in earnings and revenue in its fiscal second quarter.
The Burbank entertainment and media giant reported on Wednesday an adjusted net income of $2 billion (93 cents a share) for the quarter ending April 1, compared with adjusted net income of $2.1 billion ($1.08) in the same period a year earlier. Revenue increased 13% from the second quarter of the prior year to $22 billion.
Analysts on average expected earnings of 93 cents on revenue of $22 billion, according to Thomson Financial Network.
Disney Chief Executive Bob Iger said he was pleased with the accomplishments made during the quarter, including the improved financial performance of the company’s streaming business, which reflects the strategic changes made to realign the company for sustained growth and success.
“From movies to television, to sports, news, and our theme parks, we continue to deliver for consumers, while establishing a more efficient, coordinated, and streamlined approach to our operations,” Iger said in a statement.
The direct-to-consumer business, which includes streaming services Disney+, ESPN+ and Hulu, showed an increase in revenue of 12% to $5.5 billion for the quarter. The operating loss was trimmed by $200 million, from $900 million to $700 million.
The company attributed the change in operating cost to improved performance at Disney+ and ESPN+, partially offset by lower operating income at Hulu.
“The improvement at Disney+ was due to higher subscription revenue and a decrease in marketing costs, partially offset by higher programming and production costs and, to a lesser extent, increased technology costs,” the company said in a release. “Higher subscription revenue was attributable to subscriber growth and increases in retail pricing, partially offset by an unfavorable foreign exchange impact.
“Improved results at ESPN+ were attributable to growth in subscription revenue due to an increase in retail pricing and subscriber growth,” the company added.
Shares in Disney (DIS) closed down $1.04, or just more than 1%, to $101.14 on the New York Stock Exchange, on a day when the Dow Jones closed down a fraction of a percent.