Disney earnings down ahead of streaming service launch

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Walt Disney has reported a bigger fall in third quarter earnings than expected, despite recent blockbusters

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The company blamed costs involved with its plunge into streaming and its acquisition of Twenty-First Century Fox, a deal which closed in March. The direct-to-consumer and international unit reported an operating loss of $553m from April to June, more than the $441m loss analysts had anticipated, and up from a $168m loss from a year earlier.

Future digital investments will lead to an operating loss of around $900m in the direct-to-consumer unit in the quarter that ends in September, the company said.Image:Operating income at Disney's theme parks unit rose 4% to $1.7bn while the company's media networks division, which includes ESPN, the Disney Channels and FX, reported a 7% increase in operating income to $2.1bn .

Disney will launch its streaming service Disney+ on 12 November with subscriptions priced at $7 a month in the US.

 

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I think it’s down to diversity.

Walt Dismal

Looks like trying to buy every business isn’t working

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