Tuesday, 8 August 2017

Finance: Disney slides after missing on revenue and ending its streaming agreement with Netflix (DIS, NFLX)

ESPN sc6

Disney's second-quarter profits topped analysts' forecast but revenue missed expectations.

Disney on Tuesday reported mixed second-quarter results and some big news on its content.

Second-quarter profits topped analysts' forecasts but revenues missed expectations. Disney said it earned $14.24 billion in revenue, less than the expected $14.42 billion, according to Bloomberg. Disney earned $1.58 per share on an adjusted basis, topping the forecast for $1.55.

Disney's stock fell nearly 3% in extended trading after the earnings release.

Disney also announced that it would end its agreement to release new movies for streaming on Netflix, starting with 2019 titles.

Disney plans to launch an ESPN-branded streaming service for sports content in early 2018, and a Disney-branded service in 2019. To facilitate these, Disney is investing $1.58 billion to raise its stake in BAMTech, a video-streaming company, giving it majority ownership.

Netflix shares fell nearly 4% after-hours following the news.

Revenues from Disney's cable networks fell 3% to $4.1 billion, dragged by a continued decline at ESPN. Studio entertainment revenues were also lower year-on-year due to the weaker performance of Disney's movies. Sales at Disney's theme parks were stronger, boosted by the timing of the Easter holiday in the current quarter.

from pulse.ng - Nigeria's entertainment & lifestyle platform online

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