HK, Shanghai crowds boost Disney's bottom line
Walt Disney exceeded Wall Street's earnings expectations on Wednesday as higher attendance at its Shanghai and Hong Kong theme parks offset a decline in advertising revenue at television network ABC. Shares of the entertainment company rose 1.6 percent in after-hours trading to US$85.84. The company reported per-share earnings, excluding certain items, of US$0.82 in its fiscal fourth quarter ended September 30, topping an average forecast of US$0.7 a share, according to LSEG data. Quarterly revenue of US$21.2 billion was largely in line with consensus estimates. The company said it added nearly 7 million Disney+ subscribers in the quarter, with the inclusion of "Guardians of the Galaxy Vol. 3" and the original series "Star Wars: Ahsoka." Disney+ and Disney+ Hotstar together boast 150.2 million subscribers, ahead of Visible Alpha's estimate of 147.4 million. "Our results this quarter reflect the significant progress we've made over the past year," Disney Chief Executive Bob Iger said in a statement. "While we still have work to do, these efforts have allowed us to move beyond this period of fixing and begin building our businesses again." Disney now says it is on track to achieve US$7.5 billion in annualised savings, as it aggressively manages costs. Quarterly losses across the company's streaming services, which also include Hulu and ESPN+, narrowed to US$387 million from US$1.47 billion a year earlier, due to pricing increases and higher ad revenue. Disney said its streaming business remains on track to reach profitability by September 2024. Disney's newly named Experiences group, which includes its theme parks and resorts, and cruise lines and consumer products, reported nearly US$1.8 billion in operating income in the quarter, up 31 percent from a year ago. Higher attendance at Shanghai Disney, Hong Kong Disneyland and Disneyland resorts, and growth of the cruise businesses, helped offset lower results at Walt Disney World in Florida. Disney's Entertainment unit, which includes its television networks, its films studio and its Disney+ and Hulu services, posted operating income of US$236 million in the quarter, compared with losses of US$608 million a year ago. (Reuters)