Disney returns to profit in third quarter as streaming business starts making money for first time

Disney returned to a profitable third quarter as its combined streaming business started making money for the first time and the movie Inside Out 2 did well in theaters.

Operating income for the entertainment segment nearly tripled to $1.2 billion thanks to better performances from its direct-to-consumer and content sales/licensing and Other segments.

The Walt Disney Co. said Wednesday that its direct-to-consumer business, which includes Disney+ and Hulu, reported a quarterly operating loss of $19 million, which was smaller than its loss of $505 million a year earlier. Revenue climbed 15% to $5.81 billion.

For the period ended June 29, Disney earned $2.62 billion, or $1.43 per share. A year earlier it lost $460 million, or 25 cents per share.

Stripping out one-time gains, earnings were $1.39 per share, easily topping the $1.20 analysts polled by Zacks Investment Research expected.

Revenue for the Burbank, California, company rose 4% to…