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Disney Q3 earnings: Streaming a bright spot as parks and cruises plummet

Disney on Tuesday released its earnings numbers for the third quarter of fiscal 2020 and, as expected, its parks and cruises business took a hammering due the coronavirus pandemic.

One bright spot, however: streaming. The company announced it now surpasses 100 million paid subscribers for its full direct-to-consumer portfolio, which includes Disney+, ESPN+, and Hulu.

Shares of Disney initially declined following the report before rising about 2% in after hours trading.

In the third quarter, which ended on June 27, Disney brought in $11.78 billion revenue vs. analysts’ expected revenue of $12.39 billion. Disney managed to squeak by with a profit with its earnings per share at 8 cents vs. an estimated loss of 64 cents.

Disney’s lone segment to increase revenue year-over-year was direct-to-consumer and international. More than half of Disney’s 100 million streaming subscribers are from Disney+, with a total of 57.5 million subscribers not even one year into service. Three million of those subscribers were added in the third quarter.

Prior to Disney+’s launch in November, the company had set an initial target of 60 million to 90 million subscribers by the end of fiscal 2024.

This is a developing story and will be updated.

Source: Business – Fortune

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