Due of the increased demand for the company’s theme parks over the holiday season, Disney (DIS) released its quarterly financial results after the bell on Wednesday.
As anticipated, the lack of the Indian Premier League cricket event on Disney+’s Indian brand, Disney+ Hotstar, caused a modest decline in the number of Disney+ subscribers in the first quarter.
The business beat its earlier target as streaming losses shrank to $1.1 billion in Q1 from $1.5 billion in the fourth quarter, thanks in part to Disney’s ad-supported tier and recent price increases.
The firm released its first earnings report on Wednesday following CEO Bob Iger’s return to the organisation in November, and the findings were encouraging. As a result of this information, Disney stock rose as much as 3%.
According to Bloomberg’s compilation, these are Disney’s first-quarter results in comparison to Wall Street consensus forecasts:
Revenue: $23.51 billion below expectations of $23.4 billion
Earnings per share (EPS) adjusted: $0.99 vs. $0.75 projected
Total Disney+ subscribers: 161.8 million versus the anticipated 164 million
Revenue from amusement parks, experiences, and consumer goods: $8.74 billion vs $8.08 billion anticipated
“Following a strong first quarter, we are starting a major transformation that will maximise the potential of our elite creative teams and our unmatched brands and franchises, “Bob Iger, CEO of Disney, stated in the earnings announcement.
“We think. The work we are undertaking to rebuild our business around innovation and cut costs will result in sustainable growth and profitability for our streaming business, put us in a better position to handle future disruption and challenges to the global economy, and create value for our shareholders.
Operating income for the parks division of the company increased to $3.05 billion. The recovery follows the amusement parks division’s disappointing Q4 performance due to consumer pressure brought on by recession fears.
Following considerable consumer outcry over protracted wait times and exorbitant ticket costs, Disney this month announced long-awaited reforms to its parks reservation system and yearly passholder programme.
The year 2022 was not kind to Disney as its shares fell by nearly 45%, the worst annual stock performance for the business since 1974. Going into earnings, the stock has increased by more than 20% so far this year.