Disney’s earnings beat expectations, thanks in part to ESPN+ gains and continued theme park growth, but a decline in advertising revenue weighed on the result.
The company reported net income of $264 million, or 14 cents per share, for the fourth quarter ended Sept. 30, compared with $162 million, or 9 cents per share, in the year-ago period. Sales were $21.24 billion, compared to expectations of $21.33 billion. This is the second consecutive revenue miss for Disney and the first time the company has recorded a consecutive revenue miss since early 2018.
The decline in advertising revenue was primarily due to Disney’s ABC Network and other owned television networks reporting lower political advertising revenue in the quarter. Over the summer, CEO Bob Iger said the company could be open to selling its TV assets. This is reported by CNBC.
Meanwhile, the company added 7 million new subscribers to Disney+ compared to the previous quarter, bringing the total number of users to 150.2 million, including Hotstar. The streaming business also reduced its losses compared to the previous year.
Wall Street had expected Disney to report 148.15 million total subscribers for the quarter. The company highlighted additional 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 in the past three months.
This is also the first quarter that Disney is adopting its new financial reporting structure, which divides the company into three divisions – Entertainment, Sports and Experiences. The Entertainment division includes all of Disney’s streaming and media operations, the Sports division includes ESPN, and the Experiences division includes the company’s theme parks, hotels, cruises and merchandising.
The Walt Disney Company
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Walt Disney operates in a difficult environment. The mixed numbers are a reflection of this. The chart is in a downward trend. The stock is not an ongoing recommendation.
2023-11-08 21:21:01
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