Disney's streaming business is profitable for the first time, but its parks unit lags

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Disney notched a milestone in its streaming business: It reported profitability across its Disney+, Hulu and ESPN+ services for the first time.

After years of losses totaling billions of dollars, Walt Disney Co.'s overall streaming business has reached profitability for the first time. Third-quarter results, however, were tempered by weakening demand at the company's key parks unit. The Burbank media and entertainment giant reported Wednesday that its streaming business — which includes Disney+, Hulu and ESPN+ — took in about $6.4 billion in revenue for its fiscal third quarter, up 15% compared with a year earlier.

To reach that goal, Iger undertook a wide-ranging cost-cutting effort across the company, which slashed thousands of jobs. Overall, the company generated revenue of $23.1 billion during the fiscal third quarter, up 4% year over year. Earnings, excluding certain items, were $1.39 per share, up from $1.03 a year earlier and higher than analysts' estimates. The company's studios business also contributed to the quarterly results, led by the success of Pixar's 'Inside Out 2.

 

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