Disney beats estimates with strong Q2 earnings of $14.92 bn revenue

The company booked $373 mn in revenue from 11 days' ownership of 21st Century Fox.

MUMBAI: The Walt Disney Co (Disney) reported strong second-quarter earnings beating analyst estimates. Revenue of the media giant reached to $14.92 billion, a 3 per cent increase year-on-year. At the same time, earnings per share (EPS) decreased to $1.61, 13 per cent down y-o-y, ex-items affecting comparability.

Wall Street’s conscious estimate was $14.36 billion in revenue and $1.58 EPS for Disney’s second quarter. Within hours of reporting the Q2 earnings, Disney’s stock rose more than 2 per cent.

As the high valued deal with 21st Century Fox closed in March, this earnings report does not fully reflect the integrated company. However, it booked $373 million in revenue and $25 million in operating income from 11 days' ownership of 21st Century Fox, which became part of Disney on 20 March.

The company’s direct-to-consumer & international revenues for the quarter reached $955 million, 15 per cent up y-o-y. But the segment’s operating loss increased from $188 million to $393 million due to its ongoing investment in ESPN+ as well as for the cost associated with the upcoming Disney+ launch.

Media Networks revenues for the quarter was comparable to the prior year quarter at $5.5 bn and segment operating income decreased 3% to $2.2 bn. The company’s cable network revenue for the quarter increased two per cent to $3.7 bn and operating income increased two per cent to $1.8 bn thanks to higher affiliate revenue of ESPN. While its broadcasting revenues for the quarter decreased 2 per cent to $1.8 billion and operating income decreased 29 per cent to$247 mn, lower advertising revenue was one of the major reasons.

Studio Entertainment revenues were down 15 per cent in this quarter standing at 42.1 bn segment and operating income decreased 39 per cent to $534 mn. “The decrease in theatrical distribution results was due to the success of Black Panther and the continued performance of Star Wars: The Last Jedi in the prior-year quarter compared to Captain Marvel and no comparable Star Wars title in the current quarter,” Disney said in earnings release.

Disney is confident about its direct-to-consumer war with deep-pocket tech giants, especially on the back of the integration with 21st Century Fox. “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,” Disney CEO and chairman Bob Iger commented.

Latest Reads
ZEE signs global media rights contract with UAE’s T20 league

UAE’s T20 league today announced the signing of a long-term global media rights contract with global media and entertainment powerhouse Zee. The league will air exclusively on Zee’s linear channels and its OTT platform Zee5, in India and across the world.

Television TV Channels Viewership
Gunjan Nagpal joins Rhiti Sports management as chief business officer

Mumbai: Gunjan Nagpal has joined Rhiti Sports as chief business officer, according to his latest LinkedIn update. Nagpal has over 18 years of experience across media, digital and banking. He specialises in new business development, directing cross-functional teams, managing 360-degree events and...

Television TV Channels Sports
Journalist, author and A&M industry thought leader Anant Rangaswami no more

Journalist, author and keen observer of the media and advertising industry Anant Rangaswami has passed away on Tuesday morning in Bengaluru. Rangaswami wore many hats during his career. He was editor of Storyboard, the advertising, media and marketing show on CNBC-TV18. Previously.

Television TV Channels Viewership
IN10 Media Network elevates Samar Khan as CEO of Juggernaut Productions

IN10 Media Network has elevated Samar Khan as the CEO of its production house, Juggernaut Productions. Khan will continue to report to the network’s managing director Aditya Pittie.

Television TV Channels People
Why Barc’s landing page viewership measurement is worrying TV9’s Barun Das

The landing page controversy continues to dog ratings body the Broadcast Audience Research Council India (Barc).

Television TV Channels Viewership
Digital channel Zindagi to launch on DTH platforms as a value-added service

Mumbai: Digital channel Zindagi which features popular Pakistani soap operas will now be available on DTH platform Dish TV, D2H and Tata Play as a value-added service. The service will be available starting on 23 May.

Television TV Channels People
Rakesh Jha joins Viacom18 as VP- creative (sports business), Sports18

Rakesh Jha has joined Viacom18 as vice president-creative (sports business), Sports18. He announced his new role on LinkedIn.

Television TV Channels People
One Take Media brings the 'fun'tastic series Bablu Dablu Cubs

One Take Media has launched a fantastic series Bablu Dablu Cubs, which combines education and various teachings. It is one such fun package of edutainment series taking kids into an exciting world of the curious bear cubs. 

Television TV Channels Viewership
My11Circle Women’s T20 Challenge to air on Star Sports & Disney+Hotstar

Even as the pulsating IPLT20 tournament has entered the playoff stage, Disney Star India has announced that it’s going to add to cricket lovers’ excitement by airing My11Circle Women’s T20 Challenge from 23 May to 28 May on the Star Sports network and stream it on Disney+ Hotstar as well. The...

Television TV Channels Sports