Disney earnings top estimates amid growth in streaming subscribers

Investing.com - Walt Disney (NYSE: DIS) has reported better-than-anticipated income and revenue in the fourth quarter, boosting shares in the media giant in premarket trading on Thursday.

The company was bolstered in particular by strength at its key streaming business, which helped power a 14% jump in revenue at its entertainment segment versus the year-ago period to $10.83 billion.

Disney has targeted growth at its offerings like Disney+ and Hulu despite fierce competition among streaming video services. The number of Disney+ subscribers rose by 4% compared to the prior quarter to 122.7 million, ahead of Wall Street expectations of 119.85 million. Paying customers at Hulu and the group's Disney+ Hotstar unit also topped projections.

In a statement, CEO Bob Iger, who recently returned to the helm of Disney promising to carry out a sweeping turnaround of the business, said the overhaul has seen "significant progress."

"[W]e have emerged from a period of considerable challenges and disruption well positioned for growth and optimistic about our future,” Iger said.

Total revenue expanded by 6.3% year-over-year to $22.57 billion, above expectations of $22.47 billion. Adjusted per-share earnings of $1.14 beat estimates as well.

In its current fiscal year, Disney said it is confident in its long-term prospects and believes it is "well positioned for growth." Full-year adjusted per-share profit is seen increasing in the high-single digits, although it flagged a "modest decline" in Disney+ subscirbers compared to the fourth quarter.

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