Disney's cost-cutting plan grows by $2B, surpassing profit expectations.
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Disney's earnings exceeded expectations due to ESPN+ and theme park expansion, but lower advertising revenue tempered overall revenue.
Disney has announced its intention to persistently oversee its cost structure and further enhance its cost-saving initiatives by an extra $2 billion, aiming to reach a total of $7.5 billion.
Shares of the company rose more than 4% after the closing bell Wednesday. Disney's ad revenue decline was due to ABC Network and its affiliates' drop in political ad revenue. CEO Bob Iger hinted at a potential sale of the company's TV assets in the summer.
The streaming giant added 7 million Disney+ subscribers this quarter, reaching a total of 150.2 million users (including Hotstar) and decreased its losses from last year.
Disney's Q3 report disappointed Wall Street despite 148.15 million subscribers.
Popular films like "Elemental," "Little Mermaid," and "Guardians of the Galaxy: Vol. 3," along with the highly anticipated "Ahsoka" Star Wars series, were significant streaming content in the last three months.
The company maintains its anticipation that the amalgamated streaming enterprises will achieve profitability by the conclusion of the fiscal fourth quarter in 2024.
CEO Bob Iger identified four key opportunities for our success: streaming profitability, digital sports dominance for ESPN, film studio improvement, and growth in parks and experiences.
The essential figures from Disney's report are as follows : 1. LSEG (formerly Refinitiv) reported an adjusted EPS of 82 cents/share, beating expectations of 70 cents/share.
2. LSEG reported revenue of $21.24 billion, slightly below the expected $21.33 billion.3. Disney+ exceeded its projected subscriber base of 148.15 million, amassing an impressive 150.2 million subscribers.