3.2 C
New York
Thursday, December 7, 2023

Buy now

Disney Reports Better-Than-Expected Earnings with Increased Theme Park Attendance and Cost-Cutting Efforts

Disney reported better-than-expected quarterly earnings, driven by increased theme park attendance, cost-cutting efforts, and reduced losses in its streaming business. The company’s CEO, Bob Iger, declared that Disney is entering a new rebuilding phase following a significant restructuring, with cost-cutting efforts expected to reach around $7.5 billion, a $2 billion increase from the previously announced $5.5 billion target.

Disney’s revenue for the quarter ending on September 30, rose by 5% to $21.24 billion, although it fell slightly short of expectations. The growth in Disney’s theme parks and reduced streaming losses played a significant role in surpassing earnings expectations. For the quarter, Disney’s net income increased by 63% to $264 million, or 14 cents per share.

However, Disney’s TV stations, such as ABC, experienced a slump in ad revenue, leading to Disney reporting its second-straight revenue miss. Iger had previously mentioned exploring the sale of the company’s TV properties, including National Geographic, FX, ABC, and others. Additionally, he is considering selling a minority stake in the sports network ESPN.

In the entertainment division, Disney reported $9.5 billion in revenue, with more than $5 billion coming from direct-to-consumer services. The streaming business, which includes Disney+, Hulu, and ESPN+, reduced its losses to $387 million in the quarter, down from $1.47 billion a year earlier.

Disney’s sports unit, ESPN, reported slightly increased revenue of $3.8 billion, with operating income rising by 16% to $987 million. In the theme parks and experiences segment, Disney saw a 13% increase in revenue to $8.2 billion, with operating income rising by 31% to $1.8 billion. Higher attendance at Disney’s parks and the growth of its cruise business offset lower results at Walt Disney World in Florida.

Disney’s stock price has had a challenging year, falling below $90 for most of the year, which is less than half of its share price just two years earlier. The company is currently facing a proxy battle with activist shareholder Nelson Peltz, who is seeking board seats.

Join MultiMediaMouth+ for $3 a month

Support MultiMediaMouth.com now! For just $3/month, you will get ad-free access to select articles, Podcasts, and livestream events! Join today and support small creators!

Ruben Jay
Ruben Jay
Ruben Jay is an American broadcaster, media blogger, and podcast host. Currently, Ruben is the President of MultiMediaMouth.com and the executive producer and host of the popular podcasts You’re My Best Friend and ON AIR with Ruben Jay, exclusively on MultiMediaMouth.com. Follow Ruben on Instagram, Twitter, and Tiktok @TheRubenJay.

Related Articles

Latest Articles