Disney returns to profit in Q3 as streaming business starts making money

Disney returned to a profitable third quarter as its combined streaming business started making money for the first time and the movie Inside Out 2 did well in theatres.

Operating income for the entertainment segment nearly tripled to USD 1.2 billion thanks to better performances from its direct-to-consumer and content sales/licensing and Other segments.

The Walt Disney Co. said Wednesday that its direct-to-consumer business, which includes Disney+ and Hulu, reported a quarterly operating loss of USD 19 million, which was smaller than its loss of USD 505 million a year earlier. Revenue climbed 15 per cent to USD 5.81 billion.

For the period ended June 29, Disney earned USD 2.62 billion, or USD 1.43 per share. A year earlier it lost USD 460 million, or 25 cents per share.

Stripping out one-time gains, earnings were USD 1.39 per share, easily topping the USD 1.20 analysts polled by Zacks Investment Research expected.

Revenue for the Burbank, California, company rose 4 per cent to US