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 per cent 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 board challenges from activist investors last month, said.
He also unveiled a 10-year, $60-billion investment in theme parks and announced plans for a stand-alone 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 per cent increase from a year ago.