The continued strength of its theme parks and an improving streaming business propelled The Walt Disney Co. delivered higher earnings and sales in the fiscal second quarter.
But the company lost 4 million streaming subscribers to its Disney+ service, and its shares fell 4.5% in after-hours trading.
The entertainment giant, which is in the middle of a ” strategic reorganization“has worked to eliminate approximately 7,000 jobs to save $5.5 billion across the organization.
Bob Iger who returned in November The company, which is taking over from Bob Chapek as CEO, has been working for the past six months to transform Disney’s streaming business while ensuring that the financial clout of its theme parks doesn’t dwindle.
He also had to grapple with an attempt to protect Disney World’s theme park district from a takeover by Florida Gov. Ron DeSantis. Disney sued DeSantis In late April, he claimed the governor had launched a “targeted government retaliation campaign” after the company defied a call from law critics. don’t say gay.” Disney’s legal filing is the latest salvo in one more than years old feud between the Company and DeSantis.
“We are pleased with our achievements this quarter, including the improved financial performance of our streaming business, which reflects the strategic changes we have made across the business to reposition Disney for sustained growth and success,” Iger said in a Explanation.
For the three months ended April 1, Disney earned $1.27 billion, or 69 cents a share. That compares to $470 million a year ago, or 26 cents a share.
Adjusted for one-time items, Disney earned 93 cents a share, according to a survey by FactSet, in line with analysts’ expectations.
Revenue rose 13% to $21.82 billion. This also met Wall Street’s forecast of $21.8 billion.
Revenue in the parks, experiences and products segment rose 17% for the quarter. Revenue for the segment, which includes Disney’s movie business, rose 3%.
In Disney’s first fiscal quarter, revenue from its parks, experiences and products division rose 21%, while revenue from the unit that houses the movies business rose 1%.
The company lost 4 million subscribers to its Disney+ streaming service and ended the second quarter with 157.8 million paid subscribers.
Hello The number of subscribers remained almost unchanged at 48.2 million. Disney said it plans to combine the two services into one app. The decline was largely due to losses at Disney+ Hotstar, the company’s streaming service brand in India and some other Southeast Asian countries.
Disney’s amusement parks are widely recognized by industry professionals as a critical part of the Burbank, California-based company’s operations. To that end, Iger has made reconnecting with die-hard Disney theme park devotees and restoring their trust in the brand a priority.
Shortly after Iger’s return changes rolled out in US parks. And on Monday, Disney announced some big changes coming to Walt Disney World next year, including the return of Disney meal plans and offering a few days that Annual Pass holders and Disney cast members can visit Walt Disney World’s theme parks without require a parking reservation.
Disney stock fell $4.69, or 4.6%, to $96.45 in after-hours trading.
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