disney Disney reported on Wednesday that the price hike narrowed its streaming losses and helped offset the loss of 4 million subscribers on Disney+.
The company, which posted revenue and profit in line with Wall Street estimates, also reported significant growth in its theme parks. during its second fiscal quarter. However, its linear TV unit struggled.
Disney shares were down about 2% in after-hours 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 the company returned to the helm late last year. He is overseeing a sweeping restructuring of Disney, which includes a targeted total of 7,000 job cuts. The company plans to start a third wave of layoffs before the summer.
Here are the results compared to estimates from Refinitiv and StreetAccount:
- earnings per share: 93 cents per share adjusted, versus 93 cents per share expected, according to a Refinitiv survey of analysts
- Income: $21.81 billion versus $21.79 billion expected, according to Refinitiv
- Disney+ Subscriptions Total: 157.8 million vs. 163.17 million expected according to StreetAccount
Iger’s second stint at Disney also comes as legacy media companies compete with a rapidly changing landscape, as advertising dollars dry up and consumers increasingly ditch their cable subscriptions in favor of streaming.
Yet the streaming space has been difficult to navigate in recent quarters, as spending has increased and consumers have become more conscious of their media spending.
Wall Street had expected Disney+ subscriptions to grow less than one percent during the quarter to reach 163.17 million users. However, the service saw a 2% decline in subscriptions, falling from 161.8 million to 157.8 million subscribers as of 31 December. Most of these losses came from an 8% drop in India’s Disney+ Hotstar subscriptions. An additional 600,000 customers were lost domestically.
The company’s direct-to-consumer operating income losses were lower than expected, however, as Disney reported a loss of $659 million during the quarter, compared to an $841 million loss estimated by Street accounts. Revenue for the unit rose 12% to $5.51 billion, reflecting recent price increases.
Disney said a lower operating loss during the quarter was due to improved results at Disney+ and ESPN+, partially offset by lower operating income at Hulu.
The company also saw higher subscription revenue on Disney+, where average revenue per user for home subscribers grew 20% to $7.14. This gain was offset by a 20% decline in Disney+ Hotstar revenue, which pushed global Disney+ ARPU to just $4.44, lower than the $4.52 estimated by Street accounts.
Disney’s linear TV network posted revenue of $6.63 billion for the period, down 7% from a year ago.
Overall, for the three-month period ended April 1, Disney reported net income of $1.49 billion, or 69 cents per share, compared to $597 million, or 26 cents per share, a year earlier. Excluding certain items, earnings per share for the most recent period was 93 cents.
Revenue for the quarter rose 13% year over year to $21.82 billion.
One bright spot for Disney came from its parks, experiences and products divisions, which saw revenue rise 17% to $7.7 billion during the most recent quarter.
Its theme park locations generated approximately $5.5 billion in revenue. The company said guests spent more time and money at its parks, hotels and cruises both domestically and internationally during the quarter. Its cruise business, in particular, saw an increase in passenger cruise days.
Beyond running day-to-day operations at the company, shareholders and industry analysts expect Iger to address several current challenges during Disney’s earnings call on Wednesday.
Disney expanded on it on Monday federal lawsuit Ron DeSantis against Florida Gov. accusing Republican leader doubling down on your “vengeance campaign” against the company by sign into law To cancel Disney’s development deals in Orlando.
In addition, the company is already Given the impact of the writers’ strikeIncluding the production shutdown of Marvel Studios’ “Blade,” which was set to begin filming in Atlanta next month, as well as the Disney+ Star Wars series “Endor.”