On Wednesday, Disney reported its second quarter financial results as their stream losses narrowed and parks continued strong.
Its stock price went down by -1.02% to $101.14 per share on May 10. Likewise, it is expected to drop by -4.76% to $96.33 apiece in the upcoming session.
The company’s earnings per share declined by $0.93, lower than the analysts’ $0.95 speculations. Therefore, the latest figures are below the previous $0.99 reading.
Moreover, the revenue of Disney plunged to $21.82 billion, weaker than the $21.80 billion consensus. As a result, it is a slide from the former $23.51 billion data.
Furthermore, it reduced its streaming losses to $400.00 million from the last quarter but now has fewer subscribers.
Higher prices and minor marketing expenses helped improve the company’s performance from January to March. Also, the division closed the quarter with an operating loss of $659.00 million. It is lower compared to the $1.10 billion in the prior quarter.
According to experts’ expectations, Disney would have more customers, over 1 million in the quarter.
In addition, its theme parks, mainly its international parks, continue to perform strongly. As a result, its operating income reached $2.17 billion, resounding the latest trends at competitors such as Comcast’s Universal.
Profit Plan Laid Out by Disney for Streaming
Disney has laid out its profit plan for its streaming service, Disney+. However, it will likely make customers unhappy since it reduces the content offered and charges higher.
On the other hand, it is excellent news for investors. Disney+ and its two services, ESPN+ and Hulu, slashed their losses to $228.00 million.
Moreover, Disney could trim losses with lesser subscribers, higher subscription revenue, and low marketing costs.
Furthermore, its continuous efforts to decrease losses and its start to make profits in the streaming business could disappoint fans.
CEO Bob Iger said the company would produce less content on the services. Also, they plan to remove some existing content available for streaming. Removing the content would take $1.50 billion to $1.80 billion.