Walt Disney (DIS) released better than expected financial results in the third quarter of 2019, and detailed its offer of Disney + streaming video, which will be launched on November 12 in the United States. The net profit of the American giant declined over a year, but came out a little higher than the consensus, thanks to the success of the film “The Lion King” and its theme parks. Profit reached $1.05 billion, or $1.07 per share adjusted, compared to $2.32 billion ($1.48 adjusted per share) a year earlier.
Sales jumped 34% to $19.1 billion from $14.3 billion in the third quarter of 2018. These figures outperform analysts’ expectations for earnings and overall online sales. The consensus of the firm Factset had called for EPS of 94 cents per share and sales of $19.2 billion.
On Wall Street, the DIS shares reacted positively, jumping 3.76% to $137.96 at the close. Disney’s share price has increased by almost 26% since the beginning of the year, supported by the prospect of Disney +’s success, which will be launched on November 12 with an attractive subscription starting at $6.99 per month, lower than its main competitor Netflix ($8.99 for the basic offer in the United States).
Revenues from Disney’s media networks totaled $6.5 billion, up 22% from the third quarter of 2018, while revenue from amusement parks and hotels reached $6.65 billion (+8 %) and that movie studios have seen their sales jump 52% to $3.3 billion, thanks to the success of the movie “The Lion King”.
Disney CEO Bob Iger commented on the results, saying the group “has spent the last few years completely transforming Walt Disney to focus its resources and creativity to directly provide consumers with an extraordinary experience. Look forward to the launch of Disney + on November 12,” he added in the release of the results.
The Disney boss detailed the band’s ambitions in streaming during the conference call following the publication of the accounts, and in an interview with CNBC. Disney + will offer a vast catalog, with 500 films (“Star Wars”, Pixar, Marvel … collections) and 7,500 series episodes, including the 30 “Simpson” seasons. The group hopes to attract between 60 and 90 million subscribers to Disney + by 2024.
The service will be launched on November 12 in the United States, Canada and the Netherlands, and on November 19 in Australia and New Zealand, followed on March 31, 2020 by five European countries: France, Germany, United Kingdom, Italy and Spain.
Disney finalized its largest acquisition at the beginning of the year, spending $71.3 billion on the purchase of the majority of 21st Century Fox’s assets , including 20th Century Fox movie studios, Nat Geo and FX TV channels, as well as franchise rights such as Avatar, X-Men, and Simpsons.