Disney confirmed its rumored 33 percent stake in MLB Advanced Media, the streaming video division of Major League Baseball, which is valued at about $3.5 billion.
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Adjusted earnings for the quarter were $1.62 per share.
The new park should generate $1.5 billion to $4.5 billion a year in revenue, according to Drexel Hamilton analyst Tony Wible.
The company posted $1.62 in earnings per share (EPS) on $14.28 billion in revenue.
The results underscore the benefit of Disney’s diverse portfolio.
John Skipper, ESPN president and Disney Media Networks co-chair, said in a statement that the investment reflects the network’s growing interest in reaching sports fans beyond traditional cable packages, but not meant to take away from its linear audience. The company said ESPN continued to lose subscribers in the quarter that ended July 2.
Investors seem to only care about Disney’s (DIS) ESPN business.
Disney’s investment in BAMTech – already a global leader in direct-to-consumer streaming services, data analytics and commerce administration with almost 7.5 million total paid subscribers to its clients’ OTT products – will provide capital to accelerate growth of its proprietary video-delivery platform, deliver greater flexibility to clients and develop new technologies and capabilities.
For Disney, beating analysts’ predictions was a return to normalcy after the company failed to meet those expectations last quarter for the first time since 2011. In June, Disney opened its $5.5 billion Shanghai Disney Resort, the company’s largest foreign investment. Also in focus will be any potential impact that the Zika virus and the recent nightclub shooting in Orlando has had on attendance at Disney World.
Disney’s shares were down marginally at $96 in extended trading on Tuesday. The deal allows Disney to eventually acquire majority ownership of BAM Tech in the coming years should this prove a worthwhile investment. Broadcasting revenues, suffered an operating income decline of 6% to $282 million.
Parks profit climbed 8 percent to $994 million. Operating income rose 62% to US$766mil (RM3.06bil).
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The changing market for pay television, marked by a drop in subscribers for conventional cable and satellite services, is forcing companies such as Burbank, Calif. -based Disney to rethink how they offer programming. In fact, Disney is now home to the four of the top-five highest-grossing box-office films to date in the US.
