Walt Disney shares have surged after its theme parks, a remake of The Lion King and the Toy Story four film helped pushed income up by greater than a 3rd in its final quarter.
The US leisure agency unveiled its newest outcomes because it prepares for the debut of its Disney+ service within the US subsequent week amid an industry-wide battle for streaming supremacy.
Income for the three months to 28 September rose 34% to $19.1bn (£14.9bn) – in keeping with market expectations.
Internet earnings, its core revenue measure, fell by greater than half nevertheless – to simply above $1bn because it booked a collection of prices associated to Disney+ and its takeover of Fox leisure belongings.
Nonetheless, the determine beat market estimates as streaming funding prices got here in decrease than Disney had guided.
Disney is the newest US agency making an attempt to enter a market dominated by Netflix, with different new entrants together with AT&T and NBC – the latter a division of Sky Information’ US mum or dad agency, Comcast.
Disney boss Bob Iger advised analysts in a convention name after the outcomes had been revealed that Disney+ would have 620 motion pictures, 10,000 TV episodes and quite a few brief options by its fifth yr.
It’s focusing on 60 million to 90 million subscribers by that point.
There might be 5 content material classes for subscribers: Disney, Pixar, Marvel, Star Wars and Nationwide Geographic.
They are going to be obtainable by Apple, Google, Microsoft, Sony and Roku’s streaming-distribution platforms with Amazon Hearth, Samsung and LG additionally internet hosting the service.
It isn’t resulting from launch within the UK till subsequent spring.
Britbox joins battle of the streaming giants
Shares had been greater than 5% larger in after-hours buying and selling.
Nicholas Hyett, fairness analyst at Hargreaves Lansdown, mentioned of the outcomes: “Disney has, as anticipated, seen prices spike within the run as much as the launch of Disney+.
“That makes these outcomes superficially fairly ugly… even in the event you look by the disruption brought on by the Fox deal earlier this yr.
“On a extra elementary stage although we predict there’s rather a lot to love. Regardless of the additional funding Disney continues to generate vital free money move, which Netflix will probably have a look at with envy, and the potential for the brand new Direct-to-Shopper provide to generate new income streams seems vital.”