Disney’s Profits Surpasses Estimated Forecasts. Disney+ Proved to be A Notable Specimen
Date : 09th November, 2023
THE SOIL – ESPN+’s profit and the theme parks’ ongoing expansion contributed to Disney’s earnings exceeding forecasts.
Disney added that it intends to keep up its “aggressive management” of its cost base, boosting its cost-cutting initiatives by an extra $2 billion to reach a goal of $7.5 billion.
Following the closing bell on Wednesday, the company’s shares increased by over 4%.
Disney's Total User Base Reaches 150.2 Million
Disney’s ABC Network and other owned TV stations received lower political advertising revenue during the quarter, which was the main cause of the decline in ad revenue.
With the addition of 7 million additional core Disney+ customers from the prior quarter, the company’s total user base, including Hotstar, now stands at 150.2 million.
The company is still projecting that in the fiscal fourth quarter of 2024, its integrated streaming businesses would turn a profit.
For the fiscal fourth quarter that concluded on September 30, the firm recorded net income of $264 million, or 14 cents per share. This represents an increase from the previous year’s net income of $162 million, or 9 cents per share.
Disney's Experience Segment Witnessed 13% Raised Sales to $8.16 Billion
Wall Street had predicted that the company would make 70 cents per share, but after impairments, it made 82 cents per share.
During the quarter, Disney’s experience segment witnessed a 13% increase in sales to $8.16 billion, driven by increasing park attendance and domestic and international ticket pricing.
The Florida resort owned by the firm continues to provide reduced hotel rates, despite increased operational costs in that region.