Written by Lisa Richwine, Walt Disney’s streaming entertainment unit achieved its first profit earlier than expected, leading to an increase in the company’s annual earnings per share outlook. Despite a 1.4% decrease in premarket trading, Disney now anticipates a 25% rise in adjusted earnings per share for the fiscal year, up from the previous 20% forecast. This positive change is attributed to the strong performance of theme parks and enhancements in the streaming business.
The direct-to-consumer entertainment division, which includes Disney+ and Hulu, reported an operating income of $47 million from January to March. Disney had initially projected the streaming operation to become profitable by September, after facing losses since the launch of Disney+ in 2019 to compete with Netflix.
With the division’s turnaround yielding results, Disney’s future in the streaming industry looks promising.
Posted on finance.yahoo.com on 2024-05-07 05:31:42