Disney Acquires Stake in Streaming Media Company as Q3 Earnings Beat View

walt-disney-dis-logoEntertainment giant Walt Disney Co (NYSE:DIS) late Tuesday posted better-than-expected quarterly profit and revenues, driven largely by its movie studio segment and the success of Finding Dory.

The Burbank, CA-based company reported fiscal third quarter earnings of $1.62 per share on 9% revenue growth to $14.28 billion. On average, Wall Street analysts expected a slightly smaller profit of $1.61 on sales of $14.16 billion.

Other notes from the call included:

  • Media Networks revenues rose 2% to $5.9 billion.
  • Cable Networks revenues rose 1% to $4.2 billion.
  • Broadcasting revenues rose 5% to $1.7 billion.
  • Parks and Resorts revenues rose 6% to $4.4 billion.
  • Consumer Products & Interactive Media revenues fell 1% to $1.1 billion.
  • Studio Entertainment revenues surged 40% to $2.8 billion.

The company also disclosed a new 33% stake in Major League Baseball’s BAMTech streaming media company, which it purchased for $1 billion. “Our investment in BAMTech gives us the technology infrastructure we need to quickly scale and monetize our streaming capabilities at ESPN and across our company,” said Robert A. Iger, Chairman and Chief Executive Officer, The Walt Disney Company. “We look forward to working closely with BAMTech as we explore new ways to deliver the unmatched content of The Walt Disney Company across a variety of platforms.”

Disney shares fell $1.12 (-1.16%) to $95.55 in after-hours trading Tuesday. DIS has fallen 8% since the start of 2016, compared with a 7% gain in the S&P 500 index during the same period.

DIS-2016-08-09

You are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (www.etfdailynews.com)

Powered by WPeMatico