Disney’s second-quarter revenue
The Walt Disney Company’s (DIS) revenue of $14.92 billion exceeded the expectation of $14.36 billion in the second quarter of fiscal 2019. The company has beaten revenue estimates in the last three consecutive quarters. Its revenue rose 2.6% YoY (year-over-year) in the second quarter of fiscal 2019.
Media peers Comcast and Dish Network also reported their first-quarter results recently. Comcast’s revenue rose 18% YoY in the first quarter but fell short of analysts’ expectation of $27.2 billion, whereas Dish Network’s revenue was in line with the expectation of $3.19 billion in the quarter but fell ~8% YoY.
The ~3% growth in Disney’s revenue mainly came from strong growth in its Direct-to-Consumer & International segment, including its 60% stake in Hulu, which soared 15% YoY in the quarter. The company completed its acquisition of the significant media assets of 21st Century Fox on March 20 after rival Comcast decided to withdraw from the bidding war. Disney’s purchase of Fox’s assets provided it with an additional $373 million in revenue and $25 million in operating income in the second quarter of fiscal 2019.
Disney’s Parks, Experiences and Products segment also showed revenue improvement of 5% in the second quarter driven by higher spending at the company’s domestic theme parks and resorts. The revenue of Disney’s Media Networks segment, which includes ESPN, remained flat at $5.5 billion in the quarter, as improvement in its Cable Networks division backed by higher ESPN revenue was offset by a fall in the Broadcasting division.
Revenue in Disney’s Studio Entertainment segment fell 15% YoY due to the lack of blockbuster movies in the quarter compared to the previous year’s quarter, which featured blockbuster films such as Black Panther and Star Wars: The Last Jedi.