Disney’s 1st-quarter results beat expectations

NEW YORK: The Walt Disney Co.’s first-quarter net income beat expectations as higher revenue from its media networks and theme parks helped offset a weaker movie slate during the quarter.

Disney and other media companies are facing a shifting landscape as more TV watchers switch to streaming rather than traditional cable bundles. Disney is building up its streaming offerings by buying 21st Century Fox’s entertainment assets for $71.3 billion (Dh261.85 billion) and launching its own streaming services such as ESPN Plus and Disney Plus.

CEO Bob Iger said Disney Plus and other direct-to-consumer businesses are Disney’s “No. 1 priority.”

The entertainment company’s net income fell 37 per cent to $2.79 billion, or $1.86 per share. The drop was due mainly to a hefty benefit from tax changes in the prior-year quarter. Excluding one-time items, net income totalled $1.84 per share. Analysts expected net income of $1.54 per share, according to FactSet.

The Burbank, California-based company’s revenue slipped less than 1 per cent to $15.3 billion from $15.35 billion last year. That beat analyst expectations of $15.16 billion.

In a call with analysts, CEO Iger said the deal with Fox is awaiting final regulatory approval in a few remaining markets before it closes.

Disney Plus will debut at the end of the year. No pricing has been disclosed. ESPN Plus, a $5-a-month service that offers content separate from the ESPN cable channel, continues to grow. It has 2 million paid subscribers, double what it had five months ago.