Disney is on the precipice of the entertainment industrys white whale: Profitability in streaming.

The company reported its fiscal Q2 earnings early Tuesday morning, disclosing that its combined direct-to-consumer businesses of Disney+, Hulu and ESPN+ lost only $18 million last quarter, on revenues of $6.2 billion, and that when ESPN+ is removed from that equation, the entertainment streaming business was actually profitable, with revenues of $5.6 billion and a net profit of $47 million.

While the company warns that Q3 will be choppier thanks to some changes at Disney+ Hotstar, it says that expects the streaming division to be fully in the black in fiscal Q4, and to be a meaningful future growth driver for the company after that. Charters big deal with Disney was also a major factor in the quarter, helping to cause Disney+ subcribers to surge by more than 6 million, however the average revenue per subscriber fell slightly from $8.15 to $8 to reflect the wholesale pricing associated with the deal. Relatedly, Disneys linear business saw revenue fall by 7% and operating income fall by 18% due in part fo the decision to drop Freeform, Disney Junior and other channels from Charter, as well as lower linear ratings overall.

Our results were driven in large part by our experiences segment as well as our streaming business. Importantly, entertainment streaming was profitable for the quarter, and we remain on track to achieve profitability in our combined streaming businesses in Q4, Disney CEO Bob Iger said in a statement.

Looking at our company as a whole, its clear that the turnaround and growth initiatives we set in motion last year have continued to yield positive results, he continued. We have a number of highly anticipated theatrical releases arriving over the next few months; our television shows are resonating with audiences and critics alike; ESPN continues to break ratings records as we further its evolution into the preeminent digital sports platform; and we are turbocharging growth in our Experiences business with a number of near- and long-term strategic investments.

Disney generated $22.1 billion in revenue last quarter, up 1 % from a year ago, with operating income of $3.8 billion, up 22%. Its free cash flow in the quarter was $2.4 billion.

As usual, the biggest driver of the companys finances is its experiences division, which had revenue of $8.4 billion and operating income of $2.3 billion, both up double digits from a year ago.

Entertainment segment revenue was $9.8 billion, down 5% from last year, but with operating income of $781 million, up 72% from last year. The sports division, which is mostly ESPN, had revenue of $4.3 billion, and operating income of $778 million.

More to come.