Disney leads profit expectations with flow gains, raises guidance

Walt Disney published a better quarterly results than expected and raised annual profit expectations on Wednesday, led by gains in the broadcasting trade, which is expected to be the focus of the growth strategy in the coming years.

In the past 24 hours, the media and entertainment company entered two specialties He deals with the National Football League And WWE because it is preparing to broadcast ESPN $ 29.99 a month, which will give viewers to reach sports events, including the American Football Association and the National Basketball Association.

The profits per share increased by 16 % from last year to $ 1.61 for the third quarter of Disney. Analysts sign $ 1.47, according to LSEG data.

the WWE deal It will bring exclusive rights to major wrestling events, including Wrestlemania and Royal Rumble to the broadcast service, scheduled for August 21.

Disney Bob Eugeger CEO said that the launch of the ESPN and NFL Deal application, along with the next Hulu integration in Disney+, will create a “truly distinct suggestion.”

The US Football Association will get a 10 % share of the Disney Sports Espn sports network. The value of the deal has not been revealed.

The company builds its sport and entertainment work with a decrease in traditional TV viewing. It also expands the famous entertainment gardens and cruises.

For the full year ending in September, the company expected the profitability of the modified stock of $ 5.85, an increase of 10 cents of previous expectations.

“With ambitious plans in front of all our works, we have not finished building, and we are excited about the future of Disney,” said Eger.

The company expected that it would add 10 million subscribers to Disney+ and Hulu in the current quarter, most of them from an expanded partnership with the cable operating company.

In the justice, Disney and Hulu subscriptions increased by 2.6 million to 183 million, prompting 6 % increase in revenue in the direct business of the consumer. The unit recorded a 346 million dollar operating income, compared to a loss of $ 19 million a year ago.

The operating income in the entertainment department decreased by 15 % to one billion dollars. Disney attributed the decline to low results of traditional TV networks and the strong performance of the movie “from the inside to 2” a year ago.

The Disney Gardens Department has made a profit of 13 % in operational income to $ 2.5 billion. The profits in the local gardens increased by 22 % even with a new competition in Orlando, Florida, from Universalpic Univeerse, which opened in late May, where visitors increased their spending.

Hugh Johnston, financial manager of Disney, said Walt Disney World in Orlando recorded record revenues for a quarter.

In the sports unit, the operating income increased by 29 % to one billion dollars. The local ESPN profit decreased by 3 %, partly from high programming and production costs, including the price increase in the American Professional League games and university sports.