Disney’s fiscal third-quarter earnings topped analyst estimates as its combined streaming businesses turned a profit earlier than expected.
Disney reported a $1.39 earnings per share. Wall Street expected $1.19. Disney’s revenue for the quarter also came in at $23.16 billion, beating estimates of $23.07 billion.
As Disney’s streaming unit saw positive results, the company’s total segment operating income increased 19% to $4.225 billion compared with the same period last year.
Disney’s combined streaming business, which consists of Disney+, Hulu, and ESPN+, together turned a profit for the first time.
The streaming business turned a profit earlier than expected, posting an operating profit of $47 million compared with a loss of $512 million in the same quarter last year.
However, without ESPN+, the direct-to-consumer streaming unit reported a loss of $19 million. Meanwhile, in May, Disney reported that Disney+ and Hulu together turned a profit, but when combined with ESPN+, the streaming businesses suffered a loss.
Revenue for Disney’s entertainment segment was up 4% to $10.58 billion, driven largely by subscription revenue growth due to price increases and customer growth for Disney+ Core.
Disney’s overall revenue increased 4% to $23.155 billion compared with the same period last year.
