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Los Angeles – Significant improvement in revenue and profit margins with less subscriber attrition disneyfiscal year of Earnings report for the first quarter.
The company’s linear TV and D2C units struggled during the period, but its theme parks posted strong year-over-year growth.
Led by CEO Bob Iger at the helm, Disney is looking to “major transformation” of its business by cutting costs and putting creativity back into the hands of content creators.
“The work we are doing to restructure the company around creativity will lead to sustained growth and profitability in our streaming business, while reducing costs, to help us navigate future turmoil and global economic challenges. We believe we will be better positioned to weather the 2019 crisis and deliver value to our shareholders,” Iger said in a statement ahead of the company’s earnings release.
Below are the results compared to Refinitiv and StreetAccount estimates.
- Earnings per share: 99 cents per share, adjusted.Analysts surveyed by Refinitiv found 78 cents per share expected
- Earnings: $23.51 billion vs. $23.37 billion forecast, according to Refinitiv
- Total Disney+ Subscriptions: 161.1 million expected, according to StreetAccount
Iger’s return comes as legacy media companies grapple with a rapidly changing landscape as ad dollars dry up and consumers increasingly abandon cable subscriptions in favor of streaming. Even the streaming space has been difficult to navigate in recent quarters as costs balloon and consumers become more cost-conscious about their media spending.
Disney’s streaming service’s recent price hike may have cost it about 2.4 million Disney+ subscribers during the fourth quarter. The company was expected to lose more than $3 million of him, according to StreetAccount.
Additionally, the direct-to-consumer business again posted an operating loss, as Disney predicted last quarter. In the most recent quarter, he posted an operating loss of $1.05 billion, below Wall Street’s estimate of his $1.2 billion.
The bright spot for Disney comes from its Parks, Experiences and Products division, where revenue increased 21% to $8.7 billion in the most recent quarter.
Over $6 billion in its revenue comes from theme park locations. According to the company, guests spent more time and money visiting parks, hotels, cruises and additional digital offerings such as Genie+ and Lightning Lane during the quarter.
Tune in to CNBC Thursday at 9am for an exclusive interview with Disney CEO Bob Iger.