Disney earnings report:
Disney earnings exceeded expectations, thanks to profit at ESPN+ and continued growth at theme parks.
However, the top line was weighed down by a decline in ad revenue.
Disney’s rocky period:
Disney’s report comes during a rocky period for the company as it grapples with a streaming business burning through cash, cord cutting, a recent string of box office flops, an ongoing actors strike and legal battles with Republican presidential candidate Florida Gov. Ron DeSantis.
Disney’s cost-cutting measures:
Disney plans to continue to “aggressively manage” its cost base, increasing its cost-cutting measures by an additional $2 billion to a target of $7.5 billion. Disney’s cost-cutting measures: The ongoing actors’ strike also helped the company reduce some short-term production costs, Disney’s interim chief financial officer, Kevin Lansberry, said.
Disney’s stock performance:
Shares of the company rose more than 5% Thursday morning. Currently the sock is at 90.43 USD+5.87
Decrease in ad revenue:
The decrease in ad revenue was primarily from Disney’s ABC Network and other owned TV stations, which saw lower political advertising revenue during the quarter.
Over the summer, CEO Bob Iger said the company could be open to selling its TV assets.
Disney+ subscriber growth:
The company added 7 million new core Disney+ subscribers from the previous quarter, bringing its total number of users to 150.2 million, including Hotstar It increased its subscriber base in the US and Canada by 1% in the quarter.
The streaming business also narrowed its losses compared with a year earlier. The company touted the addition of theatrical titles such as “Elemental,” “Little Mermaid,” and “Guardians of the Galaxy: Vol. 3” as well as the new Star Wars series “Ahsoka” as key streaming content during the last three months.
Disneyland’s price increase:
Disneyland is increasing its prices again.
Disney previously announced 7,000 job cuts in February as part of a $5.5 billion cost-saving plan. On Wednesday, the company said its efficiency target had grown to $7.5 billion.
Theme parks shine:
Disney’s theme park and cruise division was a bright spot for the company, increasing by over 30% compared to last year.
The company pointed to strength in its international theme parks and Disney cruises.
However, the company said revenues for Walt Disney World in Central Florida were weaker.
Disney’s future plans:
The company continues to expect that its combined streaming businesses will reach profitability in the fiscal fourth quarter of 2024.
CEO Bob Iger said in a statement Wednesday that there are four key building opportunities that will be central to Disney’s success: achieving significant and sustained profitability in its streaming business, building ESPN into the preeminent digital sports platform, improving the output and economics of its film studios, and turbocharging growth in its parks and experiences business.
