Walt Disney Co. shares rose 2 percent in trading trading Tuesday, April 15, 2010 Tuesday, January 30, 2010 Tuesday, January 30, 2010 The company reported earnings per share and revenue that is included in analyst estimates,
– Revenue: $ 15.30 billion, versus $ 15.14 billion expected, according to Refinitive
Revenue was down slightly from $ 15.35 billion a year ago while adjusted earning s per share fell 3 percent from $ 1.89 in the year-earlier period.
Disney's assets include cable networks such as ESPN and movie studios like Marvel, making a push into streaming services as more consumers drop their pay-TV package In favor of cheaper options that can be watched through an internet connection. The company launched ESPN + last year and plans to launch Disney +, a streaming service of its movies and original programming, later this year.
The company said that its direct-to-consumer and international segment posted revenue of $ 918 million and an operating loss of $ 136 million in its first quarter ended Dec. 29. due to increased costs related to ESPN + and the upcoming launch of Disney +.
On the earning call, Disney said that it expects investment in those ventures to negatively impact the segment's year-over-year operating income by $ 200 million in the second quarter.
Revenue in Disney's media networks business, which includes ESPN, rose 7 percent to $ 5.92 billion in the first quarter, compared to the year-earlier period, while its parks business was up 5 percent to $ 6.82 billion. Studio entertainment revenues fell 27 percent to $ 1.8 billion thanks to the strong performance of Star Wars: The Last Jedi and Thor: Ragnarok in the prior-year quarter compared to Mary Poppins Returns and The Nutcracker and the Four Realms this year.
The company expects its pending $ 71.3 billion acquisition of a majority of assets from Twenty-First Century Fox to aid its strategy in streaming. The deal is expected to provide Disney with additional media assets for its new streaming service and would also give Disney a larger stake in the streaming service Hulu.
But Disney's direct-to-consumer push comes with risks: It's hard to turn on Profit on streaming services, which usually entails high content and technology costs but traditional cable to attract consumers.
Disney said in a filing in January that its stake in Hulu and its ownership of BAMtech, the streaming technology that powers ESPN +, led to a loss of more than $ 1 trillion in the 2018 fiscal year.
Disclosure: Comcast, which owns CNBC parent NBCUniversal, is a co-owner of Hulu.