From January to March, Disney reported adjusted earnings per share of US$1.61, ahead of analyst estimates of US$1.58, according to IBES data from Refinitiv. Heavy investment accounted for a 13% drop from a year ago by that measure.Disney is trying to transform from a cable TV leader to a streaming media powerhouse that, like Netflix Inc, sells subscriptions directly to consumers. Costs to build digital services will weigh on profits for several years, the company has said.
The just-ended quarter reflected the purchase of film and TV assets from 21st Century Fox, which brought Disney more content for its streaming future. “Increased ticket prices haven’t put visitors off, and hotels continue to be a major driver of additional spending,” said Nicholas Hyett, equity analyst at Hargreaves Lansdown. “It’s easy to get caught up in the hype surrounding new films … but it’s the less glamourous Media Networks and Parks that pay the lion’s share of the bills.”