LOS ANGELES, Aug 6 (Reuters) - Walt Disney ( DIS )
posted better-than-expected results for April through June and
raised its full-year earnings guidance on Wednesday as the
company's streaming television profits grew and U.S. theme park
visitors increased their spending.
Adjusted earnings per share rose 16% from a year earlier to
$1.61 for Disney's ( DIS ) fiscal third quarter.
Analysts had expected $1.47, according to the consensus
estimate from LSEG. For the full year ending in September, the
company projected adjusted EPS of $5.85, a 10-cent increase from
a prior forecast.
The rosy earnings report was released a day after Disney ( DIS )
announced a major deal with the National Football League, which
will take a 10% equity stake in Disney's ( DIS ) ESPN ( DIS ) sports network.
The value of the deal was not disclosed.
Disney ( DIS ) is working to build its streaming business in both
sports and entertainment as traditional TV viewing declines. It
also is expanding its popular theme parks and cruise lines.
Disney ( DIS ) CEO Bob Iger said the launch of the ESPN ( DIS ) app on
August 21 and the NFL deal, along with a coming integration of
Hulu into Disney+, would create "a truly differentiated
streaming proposition."
"With ambitious plans ahead for all our businesses, we're
not done building, and we are excited for Disney's ( DIS ) future," Iger
said in a statement.
The company projected it would add 10 million Disney+ and
Hulu subscribers in the current quarter, most of them from an
expanded partnership with cable operator Charter.
In the just-ended quarter, operating income in the
entertainment division fell 15% to $1 billion. Disney ( DIS ) attributed
the drop to lower results from traditional television networks
and the strong performance of the film "Inside Out 2" a year
earlier.
Disney's ( DIS ) parks division reported a 13% increase in operating
income to $2.5 billion. Profit at domestic parks rose 22% even
with new competition in Orlando, Florida, from Universal's
Epic Universe, which opened in late May, as visitors
increased their spending.
Walt Disney World in Orlando posted record revenue for the
quarter, Disney ( DIS ) Chief Financial Officer Hugh Johnston said.
At the sports unit, operating income rose 29% to $1 billion.
Domestic ESPN ( DIS ) profit fell 3%, partly from higher programming and
production costs, including rate increases for NBA games and
college sports.