The Walt Disney Company’s third-quarter revenues rose by 33 percent to $20.2 billion, while net income from continuing operations dropped by 51 percent to $1.4 billion.
The quarterly results reflect the consolidation of 21st Century Fox and Hulu.
“Our third-quarter results reflect our efforts to effectively integrate the 21st Century Fox assets to enhance and advance our strategic transformation,” said Robert A. Iger, chairman and CEO. “I’d like to congratulate The Walt Disney Studios for reaching $8 billion at the global box office so far this year—a new industry record—thanks to the stellar performance of our Marvel, Pixar and Disney films. The incredible popularity of Disney’s brands and franchises positions us well as we launch Disney+, and the addition of original and library content from Fox will only further strengthen our direct-to-consumer offerings.”
Media networks revenues were up 21 percent to $6.7 billion with an operating income of $2.1 billion, a 7-percent gain. The cable networks contributed revenues of $4.5 billion, up 24 percent, driven by the consolidation of FX and National Geographic and gains at ESPN, partially offset by a decrease at Freeform. Segment income rose by 15 percent to $1.6 billion. Broadcasting, meanwhile, reported a lower operating income of $307 million on revenues of $2.2 billion.
Direct-to-consumer and international revenues surged to $3.9 billion from $827 million. The segment reported an increased loss of $553 million, due to the consolidation of Hulu, increased investment in ESPN+ and costs associated with the upcoming launch of Disney+.
Studio entertainment revenues increased by 33 percent to $3.8 billion and operating income rose 13 percent to $792 million.
Revenues from parks, experiences and products gained 7 percent to $6.6 billion, delivering an operating income that was 4 percent higher at $1.7 billion.