Disney share price up 1% on Q2 results revenue beat
The entertainment company's stock rises after a positive Q2 earnings report.
|Earnings per share||$1.61|
|Theme park revenue||$1.5 billion|
|Studio entertainment revenue||$534 million|
Disney share price up as Q2 results beat estimates
Disney’s Q2 earnings per share were $1.61, exceeding the $1.58 predicted by financial experts. Disney’s Q2 revenue was $14.92 billion, surpassing the projected $14.36 billion. The corporation’s revenue likely grew with the completed $71 billion acquisition of 21st Century Fox. Disney’s Q2 results included ownership of Fox for the past two weeks, with Fox’s revenue totaling $373 million.
The company’s theme park revenue surged to $1.5 billion, an increase of 15%. Disney’s theme parks likely increased revenue because of raised ticket prices in anticipation of its ‘Star Wars’ rides later in the year.
Disney’s Q2 earnings also grew because of its investment in streaming video, with $955 million in revenue from its sports app, ESPN+ and stake in streaming company Hulu.
The only negative statistic was studio entertainment income. There was a lack of a blockbuster movie in the last quarter, but revenue from current hit ‘Avengers:Endgame’ will be factored into Disney’s Q3 earnings.
Chief executive officer, (CEO), Bob Iger, spoke about Disney’s Q2 profits in a statement.
‘The positive response to our direct-to-consumer strategy has been gratifying, and the integration of the businesses we acquired from 21st Century Fox only increases our confidence in our ability to leverage decades of iconic storytelling and the powerful creative engines across the entire company to deliver an extraordinary value proposition to consumers,’ said Iger.
How did Disney’s Q2 earnings compare to other entertainment companies?
Disney’s Q2 revenue was positive compared to rival Netflix. Disney is launching a streaming service, Disney +, to compete with Netflix later this year, and both corporations beat Wall Street estimates.
Disney's Q2 earnings grow from theme parks and Fox merger
Disney’s Q2 revenue increased from the live entertainment of theme parks and video content of Fox, ESPN, and Hulu. The entertainment company hopes to add more consumers with Disney+ in the future.
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