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Disney Posts Q2 Beat, Says 'Avengers: Endgame' Begins Streaming In December

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Disney Posts Q2 Beat, Says 'Avengers: Endgame' Begins Streaming In December

Walt Disney Co (NYSE: DIS) reported a second-quarter beat Wednesday, posting earnings per share of $1.61 against a $1.58 consensus estimate and sales of $14.92 billion versus a $14.34-billion estimate.

The quarter is the first to reflect Disney's acquisition of Twenty-First Century Fox, and the company said the business' revenue in the 11 days reflected in report totaled $373 million, with operating income of $25 million.

"We're very pleased with our Q2 results and thrilled with the record-breaking success of 'Avengers: Endgame,' which is now the second-highest grossing film of all time and will stream exclusively on Disney+ starting December 11th," Robert Iger, Disney's chairman and CEO, said in a statement.

The report touched on Disney's acquisition of Fox's 30-percent stake in the streaming service Hulu  for a total interest of 60 percent. Disney said it recorded a one-time gain of $4.9 billion as a result of remeasuring its initial 30-percent stake to fair value.

The Mouse's direct-to-consumer and international segment revenue increased 15 percent to $955 million in the second quarter, with a segment operating loss that jumped from $188 million to $393 million.

"The increase in operating loss was due to our ongoing investment in ESPN+, which was launched in April 2018, costs associated with the upcoming launch of Disney+, a loss from the consolidation of Hulu and higher losses from streaming technology services, partially offset by an increase at our International Channels," Disney said.

Disney shares were higher by 1.51 percent to $137.03 in after-hours trading.

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Photo courtesy of Disney.

Posted-In: Disney+ Hulu streaming videoEarnings News Top Stories After-Hours Center Best of Benzinga

 

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