The Walt Disney Company fell into the red in the second quarter, hampered by restructuring and impairment charges, but…
Walt Disney Co. fell into the red in the second quarter, hampered by restructuring and impairment charges, but adjusted profits exceeded expectations and its streaming business was profitable. Theme parks also continued to perform well.
Disney on Tuesday said it expects its streaming business to slow in the current quarter due to its Disney+Hotstar streaming service in India, but the combined streaming business will be profitable in the fourth quarter and has a meaningful future for India. It is expected that this will become the driving force for growth. We aim to further improve profitability towards fiscal 2025.
Disney+ core subscribers grew more than 6% in the second quarter.
Disney reported a 7% increase in domestic theme park revenue and a 29% increase in international theme park revenue.
“Looking at our company as a whole, it is clear that the turnaround and growth efforts we embarked on last year continue to deliver positive results,” CEO Bob Iger said in a prepared statement. Ta.
This is the company's first financial report since last month, when shareholders rejected an effort by activist investor Nelson Peltz, a staunch supporter of Mr. Iger, to win a seat on the company's board.
For the period ended March 30, Disney suffered a loss of $20 million, or one penny per share. That compares to profit of $1.27 billion, or 69 cents per share, a year ago.
Restructuring and impairment charges jumped to $2.05 billion from $152 million in the same period last year.
Adjusted earnings were $1.21 per share, easily beating the $1.12 per share expected by analysts surveyed by Zacks Investment Research.
The Burbank, California-based company's sales rose to $22.08 billion from $21.82 billion in the same period last year. However, this was lower than Wall Street's expectations of $22.13 billion.
The stock fell 2% before the market opened.
Walt Disney Co. announced in February that it was implementing “significant cost savings,” reducing selling, general and other operating expenses by $500 million in the first quarter. The company will cut thousands of jobs in 2023.
In March, allies of Gov. Ron DeSantis and Disney reached a settlement agreement in a state court battle over how Walt Disney World should be developed following the governor's takeover of the theme park and resort government. Reached.
Last month, character performers at California's Disneyland and the union that organizes them, the Actors Equity Association, announced they had filed a petition seeking union recognition.
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