Latest news with #MikeProulx
Qatar Tribune
3 days ago
- Business
- Qatar Tribune
Disney's 3Q profit climbs on strength of domestic parks, and streaming with WWE
Agencies Disney's profit and revenue climbed in its fiscal third quarter as the entertainment company continued to add subscribers to its streaming service and see strength at its domestic theme parks. It also raised its full-year adjusted earnings forecast on Wednesday and announced a deal with WWE that will see the sports entertainment company's premium live events, like WrestleMania , streamed by ESPN. The Walt Disney Co. earned $5.26 billion, or $2.92 per share, for the three months ended June 28. A year earlier it earned $2.62 billion, or $1.43 per share. Excluding certain items, earnings were $1.61 per share. This easily beat the $1.46 per share analysts polled by Zacks Investment Research were looking for. Revenue for the Burbank, California, company totaled $23.65 billion, falling slightly short of Wall Street's estimate of $23.68 subsidiary ESPN struck a rights agreement with TKO Group's WWE to become the exclusive U.S. domestic streamer of the sports entertainment company's premium live events starting next year. Aside from gaining access to WrestleMania, ESPN will also air marquee events such as the Royal Rumble, SummerSlam and Survivor Series. The wrestling events will be available on ESPN's new streaming service, which is set to launch next month, with select ESPN cable channels also airing them. Financial terms of the agreement were not disclosed, but The Wall Street Journal said that it's a five-year deal worth more than $1.6 billion. 'Sports is the big headline coming out of Disney's latest earnings report, and for good reason. Live sports programming (like WWE Premium Live Events) amasses captive audiences that advertisers crave, and Disney is prioritizing programming with the highest ad revenue potential,' Mike Proulx, Forrester vice president, research director, said in an emailed statement. Last night the NFL announced that it had entered into a nonbinding agreement with ESPN. Under the terms, ESPN will acquire NFL Network, NFL Fantasy and the rights to distribute the RedZone channel to cable and satellite operators and the league will get a 10% equity stake in for Disney Entertainment, which includes the company's movie studios and streaming service, edged up 1%, while revenue for the Experiences division, its parks, increased 8%. Disney's direct-to-consumer business, which includes Disney+ and Hulu, posted quarterly operating income of $346 million compared with a loss of $19 million a year ago. Revenue climbed 6%. The Disney+ streaming service had no change in paid subscribers domestically, which includes the U.S. and Canada. There was a 2% rise internationally, which excludes Disney+ HotStar. Total paid subscribers for Disney+ came to 128 million subscribers, up from 126 million in the second quarter. Disney+ and Hulu subscriptions totaled 183 million, up 2.6 million from the second the fourth quarter, Disney anticipates that total Disney+ and Hulu subscriptions will increase more than 10 million compared with the third quarter, with most of the increase coming from Hulu due to the expanded Charter deal, CEO Bob Iger and Chief Financial Officer Hugh Johnston said in prepared company expects a modest increase in the number of Disney+ subscribers in the fourth quarter. Iger and Johnston also said that Disney will stop reporting the number of paid subscribers for Disney+, Hulu and ESPN+ streaming services because the metric has become less meaningful for evaluating the performance of its businesses. The company will stop reporting the metric for Disney+ and Hulu beginning with fiscal 2026's first quarter and will no longer report the figure for ESPN+ starting with fiscal 2025's fourth quarter. The Experiences division, which includes Disney's six global theme parks, its cruise line, merchandise and video game licensing, reported operating income increased 13% to $2.52 billion.
Winnipeg Free Press
3 days ago
- Business
- Winnipeg Free Press
Disney's 3Q profit climbs as it sees strength at domestic parks, adds streaming subscribers
Disney's profit and revenue climbed in its fiscal third quarter as the entertainment company continued to add subscribers to its streaming service and see strength at its domestic theme parks. It also raised its full-year adjusted earnings forecast on Wednesday and announced a deal with WWE that will see the sports entertainment company's premium live events, like WrestleMania , streamed by ESPN. The Walt Disney Co. earned $5.26 billion, or $2.92 per share, for the three months ended June 28. A year earlier it earned $2.62 billion, or $1.43 per share. Excluding certain items, earnings were $1.61 per share. This easily beat the $1.46 per share analysts polled by Zacks Investment Research were looking for. Revenue for the Burbank, California, company totaled $23.65 billion, falling slightly short of Wall Street's estimate of $23.68 billion. Disney subsidiary ESPN struck a rights agreement with TKO Group's WWE to become the exclusive U.S. domestic streamer of the sports entertainment company's premium live events starting next year. Aside from gaining access to WrestleMania, ESPN will also air marquee events such as the Royal Rumble, SummerSlam and Survivor Series. The wrestling events will be available on ESPN's new streaming service, which is set to launch next month, with select ESPN cable channels also airing them. Financial terms of the agreement were not disclosed, but The Wall Street Journal said that it's a five-year deal worth more than $1.6 billion. 'Sports is the big headline coming out of Disney's latest earnings report, and for good reason. Live sports programming (like WWE Premium Live Events) amasses captive audiences that advertisers crave, and Disney is prioritizing programming with the highest ad revenue potential,' Mike Proulx, Forrester vice president, research director, said in an emailed statement. Last night the NFL announced that it had entered into a nonbinding agreement with ESPN. Under the terms, ESPN will acquire NFL Network, NFL Fantasy and the rights to distribute the RedZone channel to cable and satellite operators and the league will get a 10% equity stake in ESPN. Revenue for Disney Entertainment, which includes the company's movie studios and streaming service, edged up 1%, while revenue for the Experiences division, its parks, increased 8%. Disney's direct-to-consumer business, which includes Disney+ and Hulu, posted quarterly operating income of $346 million compared with a loss of $19 million a year ago. Revenue climbed 6%. The Disney+ streaming service had no change in paid subscribers domestically, which includes the U.S. and Canada. There was a 2% rise internationally, which excludes Disney+ HotStar. Total paid subscribers for Disney+ came to 128 million subscribers, up from 126 million in the second quarter. Disney+ and Hulu subscriptions totaled 183 million, up 2.6 million from the second quarter. In the fourth quarter, Disney anticipates that total Disney+ and Hulu subscriptions will increase more than 10 million compared with the third quarter, with most of the increase coming from Hulu due to the expanded Charter deal, CEO Bob Iger and Chief Financial Officer Hugh Johnston said in prepared remarks. The company expects a modest increase in the number of Disney+ subscribers in the fourth quarter. Iger and Johnston also said that Disney will stop reporting the number of paid subscribers for Disney+, Hulu and ESPN+ streaming services because the metric has become less meaningful for evaluating the performance of its businesses. The company will stop reporting the metric for Disney+ and Hulu beginning with fiscal 2026's first quarter and will no longer report the figure for ESPN+ starting with fiscal 2025's fourth quarter. The Experiences division, which includes Disney's six global theme parks, its cruise line, merchandise and video game licensing, reported operating income increased 13% to $2.52 billion. Operating income climbed 22% at domestic parks. Operating income declined 3% for international parks and Experiences. Disney announced in May that it will build a seventh theme park in Abu Dhabi. 'We have more expansions underway around the world in our parks and experiences than at any other time in our history,' Iger said in a statement. 'With ambitious plans ahead for all our businesses, we're not done building, and we are excited for Disney's future.' For fiscal 2025, Disney now anticipates adjusted earnings of $5.85 per share. It previously predicted $5.75 per share. Analysts surveyed by FactSet expect full-year earnings of $5.80 per share. Monday Mornings The latest local business news and a lookahead to the coming week. While Disney continues to pull levers to successfully manage all of the different components of its business, it's also working on its search for a successor to Iger, the face of Disney for most of the past two decades. Disney created a succession planning committee in 2023, but the search began in earnest last year when the company enlisted Morgan Stanley Executive Chairman James Gorman to lead the effort. Disney does have some time, as Iger agreed to a contract extension that keeps him at the company through the end of 2026. Disney is looking at internal and external candidates. The internal candidates are widely believed to include the chairman of Disney-owned ESPN, Jimmy Pitaro, Chairperson of Walt Disney Parks and Resorts Josh D'Amaro, Disney Entertainment Co-Chairman Alan Bergman and Disney Entertainment Co-Chairman Dana Walden. Shares of Disney declined more than 4% in morning trading.
Economic Times
31-07-2025
- Business
- Economic Times
Meta stock surges after Q2 results blow past expectations despite heavy AI spending
Meta's artificial intelligence spending spree appears to be paying off with investors, who sent the company's stock soaring after hours on Wednesday following a blowout quarterly earnings report. The Menlo Park, California-based company easily beat Wall Street's expectations for the second quarter, helped by higher advertising revenue and a growing user base on its flagship social media platforms. The money is helping to fund the company's massive investments in AI development and hiring top talent at eye-popping compensation levels. "Not only has Meta made demonstrable strides with AI, but it's helping to future proof itself as a growth company, should its family of apps get affected by the current anti-trust case or changing social media sentiment," said Forrester research director Mike Proulx. Meta is facing an antitrust case that's now awaiting a judge's decision and could force the company to break off WhatsApp and Instagram, startups Meta bought more than a decade ago that have since grown into social media powerhouses. The company earned $18.34 billion, or $7.14 per share, in the April-June period. That's up 36% from $13.47 billion, or $5.16 per share, in the same period a year earlier. Revenue jumped 22% to $47.52 billion from $39.07 billion. Analysts expected Meta to earn $5.88 per share on revenue of $44.81 billion, according to a poll by FactSet. Meta said it expects costs to increase as it spends billions on infrastructure and luring highly compensated employees as it works on its AI ambitions. It's forecasting 2025 expenses to be in the range of $114 billion to $118 billion, up 20% to 24% year-over-year. In the latest demonstration of his AI enthusiasm, CEO Mark Zuckerberg on Wednesday posted a note detailing his views on "personal superintelligence" that he believes will "help humanity accelerate our pace of progress." While he said that developing superintelligence is now "in sight," he did not detail how this will be achieved or exactly what "superintelligence" means. "Meta's vision is to bring personal superintelligence to everyone. We believe in putting this power in people's hands to direct it towards what they value in their own lives," Zuckerberg wrote. "This is distinct from others in the industry who believe superintelligence should be directed centrally towards automating all valuable work, and then humanity will live on a dole of its output." Meta's shares rose $64.48, or 9.3%, to $759.7 in after-hours trading after closing at $695.21.
Perth Now
31-07-2025
- Business
- Perth Now
Meta surges after Q2 results blow past expectations
Meta's artificial intelligence spending spree appears to be paying off with investors, who sent the company's stock soaring following a blowout quarterly earnings report. The Menlo Park, California-based company easily beat Wall Street's expectations for the second quarter, helped by higher advertising revenue and a growing user base on its flagship social media platforms. The money is helping to fund the company's massive investments in AI development and hiring top talent at eye-popping compensation levels. "Not only has Meta made demonstrable strides with AI, but it's helping to future proof itself as a growth company, should its family of apps get affected by the current anti-trust case or changing social media sentiment," said Forrester research director Mike Proulx. Meta is facing an antitrust case that's now awaiting a judge's decision and could force the company to break off WhatsApp and Instagram, startups Meta bought more than a decade ago that have since grown into social media powerhouses. The company earned $US18.34 billion ($A28.50 billion), or $US7.14 ($A11.10) per share, in the April-June period. That's up 36 per cent from $US13.47 billion ($A20.93 billion), or $US5.16 ($A8.02) per share, in the same period a year earlier. Revenue jumped 22 per cent to $US47.52 billion ($A73.84 billion) from $US39.07 billion ($A60.71 billion). Analysts expected Meta to earn $US5.88 ($A9.14) per share on revenue of $US44.81 billion ($A69.63 billion), according to a poll by FactSet. Meta's daily active user base on its apps — Facebook, Messenger, WhatsApp, Instagram and Threads — was 3.48 billion, up 6.0 per cent year-over-year. Meta said it expects costs to increase as it spends billions on infrastructure and luring highly compensated employees as it works on its AI ambitions. It's forecasting 2025 expenses to be in the range of $US114 billion ($A177 billion) to $US118 billion ($A183 billion), up 20 per cent to 24 per cent year-over-year. In the latest demonstration of his AI enthusiasm, CEO Mark Zuckerberg on Wednesday posted a note detailing his views on "personal superintelligence" that he believes will "help humanity accelerate our pace of progress". While he said that developing superintelligence is now "in sight," he did not detail how this will be achieved or exactly what "superintelligence" means. The abstract idea of "superintelligence" is what rival companies call artificial general intelligence, or AGI. It's the latest pivot for a tech leader who in 2021 went all-in on the idea of the metaverse, changing the company's name and investing billions into advancing virtual reality and related technology. "Meta's vision is to bring personal superintelligence to everyone. We believe in putting this power in people's hands to direct it towards what they value in their own lives," Zuckerberg wrote. "This is distinct from others in the industry who believe superintelligence should be directed centrally towards automating all valuable work, and then humanity will live on a dole of its output." Zuckerberg said in a conference call he believes AI glasses are going to be "the main way we integrate superintelligence". Last month, Meta invested $US14.3 billion ($A22.2 billion) in AI company Scale and recruited its CEO Alexandr Wang to join a team developing "superintelligence." The tech giant also cut a 20-year deal in early June to secure nuclear power to help meet surging demand for AI and other computing needs. Meta ended the quarter with 75,945 employees, up 7.0 per cent from a year earlier. Meta's shares rose $US81.87 ($A127.22), or 11.8 per cent to $US777.08 ($A1,207.55) in after-hours trading — on track to reach a record high Thursday after the stock market opens.
San Francisco Chronicle
30-07-2025
- Business
- San Francisco Chronicle
Meta stock surges after Q2 results blow past expectations despite heavy AI spending
Meta's artificial intelligence spending spree appears to be paying off with investors, who sent the company's stock soaring after hours on Wednesday following a blowout quarterly earnings report. The Menlo Park, California-based company easily beat Wall Street's expectations for the second quarter, helped by higher advertising revenue and a growing user base on its flagship social media platforms. The money is helping to fund the company's massive investments in AI development and hiring top talent at eye-popping compensation levels. 'Not only has Meta made demonstrable strides with AI, but it's helping to future proof itself as a growth company, should its family of apps get affected by the current anti-trust case or changing social media sentiment,' said Forrester research director Mike Proulx. Meta is facing an antitrust case that's now awaiting a judge's decision and could force the company to break off WhatsApp and Instagram, startups Meta bought more than a decade ago that have since grown into social media powerhouses. The company earned $18.34 billion, or $7.14 per share, in the April-June period. That's up 36% from $13.47 billion, or $5.16 per share, in the same period a year earlier. Revenue jumped 22% to $47.52 billion from $39.07 billion. Analysts expected Meta to earn $5.88 per share on revenue of $44.81 billion, according to a poll by FactSet. Meta said it expects costs to increase as it spends billions on infrastructure and luring highly compensated employees as it works on its AI ambitions. It's forecasting 2025 expenses to be in the range of $114 billion to $118 billion, up 20% to 24% year-over-year. In the latest demonstration of his AI enthusiasm, CEO Mark Zuckerberg on Wednesday posted a note detailing his views on 'personal superintelligence' that he believes will 'help humanity accelerate our pace of progress.' While he said that developing superintelligence is now 'in sight,' he did not detail how this will be achieved or exactly what 'superintelligence' means. The abstract idea of 'superintelligence' is what rival companies call artificial general intelligence, or AGI. It's the latest pivot for a tech leader who in 2021 went all-in on the idea of the metaverse, changing the company's name and investing billions into advancing virtual reality and related technology. 'Meta's vision is to bring personal superintelligence to everyone. We believe in putting this power in people's hands to direct it towards what they value in their own lives,' Zuckerberg wrote. 'This is distinct from others in the industry who believe superintelligence should be directed centrally towards automating all valuable work, and then humanity will live on a dole of its output.' Last month, Meta invested $14.3 billion in AI company Scale and recruited its CEO Alexandr Wang to join a team developing 'superintelligence.' The tech giant also cut a 20-year deal in early June to secure nuclear power to help meet surging demand for AI and other computing needs. Meta ended the quarter with 75,945 employees, up 7% from a year earlier.
