BURBANK – The entertainment giant Walt Disney suffered a profit slump in the past fiscal quarter despite successful cinema productions. High overheads and expenses for the expansion of the streaming business pushed the surplus in the continuing business.
Here, Disney increased the quarterly sales – also thanks to acquired parts of the rival 21st Century Fox – by 34 percent to 19.1 billion dollars. Despite the sharp drop in profits, the numbers exceeded the expectations of financial analysts. Excluding special items, earnings per share were $ 1.07. Analysts had expected an average of 95 cents per unit certificate. This was well received by investors, the shares increased after hours initially by more than four percent. Since the beginning of the year, the share price has risen by a good 21 percent.
User loss at the sports channel
The entertainment giant delivered in the recent quarter of the box office hitters such as "The Lion King" and "Toy Story 4", which increased the result in the film division sharply. The amusement park business also performed well, while the cable business made less profit from the shrinking sports channel ESPN.
However, as in the previous quarter, the business results suffered from high capital expenditure, for example for the Disney + streaming service, which is due to start on November 12 and compete with the market leader Netflix. Disney also continues to digest high integration costs by acquiring large parts of the Fox Group. Company boss Bob Iger was nevertheless pleased on Thursday and spoke of "solid results" reflecting the strength of Disney's business.
(sda / dpa / reu)