Disney on Wednesday reported that its streaming losses narrowed as price increases helped offset the loss of 4 million subscribers at Disney+.
The company, which posted revenue and profit in line with Wall Street’s projections, also reported significant growth at its theme parks during its second fiscal quarter. Its linear TV unit struggled, however.
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Disney shares fell more than 4% in extended trading. The stock was up more than 16% so far this year as of Wednesday’s close.
This is CEO Bob Iger’s second earnings report since returning to the helm of the company late last year. He is overseeing a broad restructuring, including a targeted total of 7,000 job cuts. Disney plans to roll out its third wave of layoffs before summer.
Here are the results, compared with analyst estimates:
- EPS: 93 cents per share adjusted vs. 93 cents per share expected, according to a Refinitiv survey
- Revenue: $21.82 billion vs. $21.78 billion expected, according to Refinitiv
- Disney+ total subscriptions: 157.8 million vs. 163.17 million expected, according to StreetAccount
Iger’s second tenure at Disney also comes as legacy media companies contend with a rapidly shifting landscape, as ad dollars dry up and consumers increasingly cut off their cable subscriptions in favor of streaming.
Yet the streaming space has been difficult to navigate in recent quarters, as expenses have swelled and consumers become more cost conscious about their media spending.
Wall Street had expected Disney+ subscriptions to grow less than 1% during the quarter to reach 163.17 million users. However, the service saw a 2% decline in memberships, falling to 157.8 million subscribers from 161.8 million as of Dec. 31. The majority of these losses came from an 8% drop in membership at India’s Disney+ Hotstar. An additional 600,000 subscribers were lost domestically.
The company’s direct-to-consumer operating income losses were narrower than expected, however, with Disney posting a loss of $659…
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