BURBANK (dpa-AFX) - Media and entertainment major Walt Disney Co. (DIS) on Wednesday raised fiscal 2025 outlook for earnings.above the Street after reporting significantly higher profit in its third quarter, above market estimates. Meanwhile, revenues missed the market view, despite reporting a growth.
Separately, Disney announced that its unit ESPN has signed a landmark rights agreement with WWE, part of TKO Group Holdings, Inc. (TKO). Under the deal, ESPN platforms, including the new ESPN direct-to-consumer streaming service, will become the exclusive U.S. domestic home of all WWE Premium Live Events (PLEs), including the two-night cultural phenomenon WrestleMania, starting in 2026.
In addition, ESPN and the NFL have reached new licensing agreements, extending ESPN's NFL Draft rights and, separately, adding NFL programming and content to ESPN's upcoming Direct-to-Consumer or DTC service, as well as to Disney+.
With the agreement, users will be able to bundle ESPN's DTC service with NFL+ Premium.
The deals come as ESPN plans to launch its new previously announced direct-to-consumer streaming service on August 21. The company will provide the full suite of ESPN networks and services within an enhanced ESPN App with new, personalized features and functionality.
Looking ahead, for the fourth quarter, Disney projects total Disney+ and Hulu subscriptions to increase more than 10 million sequentially, with the majority of the increase coming from Hulu as a result of expanded Charter deal Disney+ subscribers.
The company projects modest increase in Disney+ subscribers compared to the preceding third quarter.
For fiscal 2025, the company now projects adjusted earnings per share of $5.85, an increase of 18 percent from fiscal 2024. The company previously expected adjusted earnings of $5.75 per share.
The Wall Street analysts on average expect the company to report earnings of $5.77 per share. Analysts' estimates typically exclude special items.
Disney projects entertainment Direct-to-Consumer operating income of $1.3 billion.
In the third quarter, the company's net income surged to $5.262 billion or $2.92 per share from $2.621 billion or $1.43 per share last year.
Adjusted earnings were $3.111 billion or $1.61 per share for the period.
Analysts had expected the company to earn $1.44 per share.
The company's revenue for the period rose 2.1 percent to $23.65 billion from $23.16 billion last year. The Street expected revenues of $23.75 b9illion for the quarter.
In the pre-market activity, Disney shares were losing around 2.1 percent to trade at $116.00.
TKO shares were gaining around 4 percent to trade at $169.99.
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