Disney+ Loses More Subscribers But Overall Streaming Losses Improve As Company Posts Solid Quarterly Report
10.05.2023 - 21:17
/ deadline.com
The Walt Disney Co. reduced losses in its streaming business by 26% (about $200 million) in its fiscal second quarter as the company’s overall results matched Wall Street expectations.
The streaming story included some mixed indicators, however. Flagship service Disney+ had its second straight quarter of sequential decline in subscribers following three years of strong and steady growth. It closed the quarter on April 1 with 157.8 million global subscribers, down 4 million from the prior quarter, with the biggest drag coming from Disney+ Hotstar, whose base shrunk by 8%.
Excluding certain items, Disney posted diluted earnings of 93 cents a share, down from $1.08 in the same quarter a year ago. Total revenue increased 13% to $21.8 billion. The EPS number met Street forecasts, while revenue slightly exceeded them.
Theme parks, which have returned to full strength after some lingering Covid setbacks in 2022, powered the quarterly performance in a throwback to non-pandemic times. The Parks, Experiences and Products division posted a 17% gain in revenue and a 23% rise in operating income.
In the company’s earnings release, CEO Bob Iger said the results reflect “the strategic changes we’ve been making throughout the company to realign Disney for sustained growth and success.” A major 2023 initiative has been laying off 7,000 workers across the company, including many in the streaming area, as the company pursues a goal of $5.5 billion in cost savings. The job cuts are slated to conclude this summer.
Iger last quarter reaffirmed that the company intends to be profitable in streaming by the end of fiscal 2024, and the latest quarterly numbers suggest those plans are largely on track. Since returning to the CEO role in
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