Disney just gave investors a lot of news to digest including June quarter earnings that were slightly ahead of expectations, and announcement of a plan to to launch an ESPN-branded streaming service with its purchase of 33% of Major League Baseball’s BAMTech.
Wall Street’s initial reaction? Disney shares are down 1.6% in post market trading.
The company reported quarterly net income of nearly $2.60 billion, up 4.6% vs the period last year, on revenues of $14.3 billion, up 9.0%. That beat the $14.2 billion analysts expected. Adjusted earnings at $162 a share beat the consensus forecast by a penny. ...
The website Seeking Alpha tells us that revenue by segment is mostly up:
Media Networks, $5.91 billion (up 2%);
Parks and Resorts, $4.38 billion (up 6%):
Studio Entertainment (and this is the BIG percentage increase, fueled by super heroes and cartoons), $2.85 billion (up 40%);
Consumer Products and Interactive Media, $1.15B (down 1%).
Disney's buying a 33% stake in video streaming firm BAMTech for $1 billion. (BAMTech had been formed by Major League Baseball and as part of the transaction has been separated from MLB Advanced Media. That will form the basis for an ESPN direct-to-consumer service.) Disney will pay in two installments and could take majority control in the future.
Cash provided by operations was up 29% to $3.6 billion, and free cash flow rose 51%, to $2.49 billion.