Investors were left with mixed feelings after Disney reported earnings that sent shares down then up after hours đ
Below is a recap of the key figures analysts were watching:
The company continues to restructure into three core businesses: film studios, parks, and streaming, which will all be linked to its brands and franchises. $2.65 billion in one-time charges and impairments caused a quarterly net loss. However, adjusted earnings per share of $1.03 topped expectations. âī¸
On the revenue side, a 4% YoY increase was slightly lower than forecasted. Disney Parks, Experiences, and Products revenue jumped 13% YoY, while Media and Entertainment Distribution fell 1% YoY.
Revenues from its Direct-to-Consumer (streaming business) jumped 9% YoY. That partially offset Linear Networks -7% YoY, Content Sales/Licensing and other -1% YoY, and Intrasegment Revenue Eliminations -18% YoY. đģ
On the streaming side, a 7.4% QoQ decline in Disney+ subscribers was larger than Wall Street anticipated. Most of those losses came from Disney+ Hotsar, which fell 24% Yoy after losing rights to Indian Premier League cricket matches. đē
To further monetize its streaming business and stem losses, the company is raising the price of its ad-free streaming tier in October. It’s also cracking down on password sharing, as the trend Netflix started begins to take hold in the industry. đē
Overall, there remains much uncertainty about the company’s turnaround plan. As a result, $DIS shares continue to hang out near nine-year lows as investors assess the struggling conglomerate’s prospects. đŽ
