Disney's surprise streaming entertainment profit offset by weaker TV business

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Walt Disney's surprise profit in its streaming entertainment division was eclipsed by a drop in its traditional TV business and weaker box office, sending its shares down 6% before the bell on Tuesday.

A screen shows the logo and a ticker symbol for The Walt Disney Company on the floor of the New York Stock Exchange in New York, U.S., December 14, 2017. REUTERS/Brendan McDermid/File Photosurprise profit in its streaming entertainment division was eclipsed by a drop in its traditional TV business and weaker box office, sending its shares down 6% before the bell on Tuesday.

The direct-to-consumer entertainment division, which includes the Disney+ and Hulu streaming services, reported operating income of $47 million for the January-March period, compared with a loss of $587 million a year earlier. "Our strong performance this past quarter demonstrates we have turned the corner and entered a new era for our company," Chief Executive Bob Iger, who defeated

He also unveiled a 10-year, $60 billion investment in theme parks and announced plans for a standalone ESPN streaming app, among other efforts. Because of costs to stream cricket, streaming entertainment will likely report a loss for the current quarter but swing back to a profit the following period, Johnston said.

The company's experiences division, which includes the Disney theme parks around the world, reported operating income of $2.3 billion, a 12% increase from a year ago.

 

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