Walt Disney’s (DIS.N) surprise profit in its streaming entertainment division was eclipsed by a drop in its traditional TV business and weaker box office, sending its shares down 6 per cent before the bell on Tuesday.

Like other media companies, Disney has been trying to adapt to consumer migration from cable television to streaming entertainment, and had promised Wall Street that its streaming operation would become profitable by September.

The division has been losing money since Disney+ debuted in 2019 in a major push by the company to compete with Netflix (NFLX.O).

The direct-to-consumer entertainment division, which includes the Disney+ and Hulu streaming services, reported operating income of $47 million for the January-March period, compared with a loss of $587 million a year earlier.

But the combined streaming business with ESPN+ lost $18 million. The division had lost $659 million in the prior year.

Revenue from traditional television business declined 8 per cent to $2.77 billion and operating profit fell 22 per cent from a year ago.

“Our strong performance this past quarter demonstrates we have turned the corner and entered a new era for our company,” Chief Executive Bob Iger, who defeated board challenges from activist investors last month, said.

“The steps we are taking today lend themselves to solidifying Disney’s place as the preeminent creator of global content,” Iger said.

Iger, who came out of retirement to revamp Disney in November 2022, instituted cost cuts that are expected to reach at least $7.5 billion by the end of September.

He also unveiled a 10-year, $60 billion investment in theme parks and announced plans for a standalone ESPN streaming app, among other efforts.

The earlier-than-expected profit from streaming entertainment was driven by aggressive cost management, Chief Financial Officer Hugh Johnston said in an interview. A year ago, the streaming unit lost $587 million.

Disney+ added more than 6 million customers during the quarter, and average revenue per user rose 44 cents, outside of India. Disney offers a lower-priced plan in India that it counts separately.

Because of costs to stream cricket, streaming entertainment will likely report a loss for the current quarter but swing back to a profit the following period, Johnston said.

The combined streaming unit should generate a fiscal fourth-quarter profit and become a “meaningful future growth driver for the company, with further improvements in profitability for fiscal 2025”, Disney said in its statement.

During the second quarter, the Mouse House posted diluted earnings per share, excluding certain items, of $1.21, above of analysts’ estimate of $1.10, according to LSEG data. Quarterly revenue rose to $22.1 billion, in line with expectations.

The company’s experiences division, which includes the Disney theme parks around the world, reported operating income of $2.3 billion, a 12 per cent increase from a year ago.

At Disney’s entertainment segment, the home of the traditional TV business, streaming and film, operating income rose 72 per cent from a year earlier to $781 million.

The sports unit that includes ESPN saw operating income decline by 2 per cent to $778 million, which it attributed to the timing of college football playoff games.

Disney now expects adjusted earnings per share to rise by 25 per cent this fiscal year, up from the prior forecast of a 20 per cent increase. It attributed the change to strong results at theme parks and improvements in the streaming business.