Disney reported a sharp rise in quarterly profits and raised its full-year earnings forecast on Wednesday, as the entertainment giant prepares to launch a long-awaited standalone ESPN streaming service. Alongside growth in its streaming and theme park divisions, the move marks a significant step in the company's evolving strategy to reshape its cultural and media footprint in the digital age.
Disney on Wednesday lifted its full-year earnings forecast after reporting higher quarterly profits, as the company readies the launch of a new ESPN sports service.
Profits for Disney's fiscal third quarter were $5.3 billion, about double the year-ago level as the entertainment giant added 1.8 million subscribers to its Disney+ streaming service.
Revenues rose 2.1 percent to $23.7 billion.
The entertainment giant announced a launch date of August 21 for its long-discussed ESPN direct-to-consumer service, designed to better monetize its sports entertainment offerings as revenue from conventional subscriptions declines.
The company has also announced ventures with the NFL American football league and the WWE wrestling network in recent days for the ESPN venture, which will be offered at $29.99 per month.
Disney's "Experiences" division also contributed to its quarterly profit increase, with the company citing higher guest spending at theme parks and an uptick in revenues from cruises following a recent ship launch.
Disney has "more expansions underway around the world in our parks and experiences than at any other time in our history," said Chief Executive Bob Iger in a statement.
He also highlighted the ESPN venture and an upcoming integration of its separate Hulu streaming service into the Disney+ platform.
"With ambitious plans ahead for all our businesses, we're not done building, and we are excited for Disney's future," Iger said.
On Tuesday night, Disney announced that ESPN had entered into an agreement to purchase the NFL Network and some other media assets in exchange for a 10 percent equity stake in ESPN, according to a Disney press release that said the NFL network would be "fully" integrated into the ESPN streaming service.
The NFL deal with Disney "will add to consumer choice, provide viewers with even greater convenience and quality, and expand the breadth and value proposition of Disney's streaming ecosystem," Iger said in a press release.
Disney shares fell 2.1 percent in pre-market trading.
With AFP
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