Walt Disney announced that its streaming media unit cut losses by more than $400 million from the previous quarter, posting earnings in line with Wall Street expectations.
An increase in prices and a reduction in marketing expenses helped improve the results of the streaming unit, which closed the quarter from January to March with losses of US$659 million. In the prior quarter, the division lost $1.1 billion. Shares of the company fell 2.6% to $98.45 in trading after the close of the regular session.
Overall, diluted earnings per share came in at 93 cents, meeting the analyst consensus forecast. Revenues reached $21.82 billion, slightly above analyst forecasts of $21.79 billion.
The company’s theme parks saw growth in Shanghai Disney Resort, Disneyland Paris and Hong Kong Disneyland Resortwhich contributed to increase the operating income of the unit by 23%, compared to the previous year, to u$s 2,200 million.
“We are pleased with our accomplishments this quarter, including the improved financial results of our streaming business, which reflect the strategic changes we have been making across the company to realign Disney for sustained growth and success,” said the Chief Executive Bob Iger in a statement.
The total number of subscribers to the flagship Disney+ service decreased by 4 million compared to the previous quarter, to 157.8 million.
Most of the casualties occurred in the Disney + Hotstar offer in India, after losing the rights to broadcast the cricket matches of the Indian Premier League. Disney also lost 300,000 customers in the United States and Canada, where it raised prices last December.
Chief Financial Officer Christine McCarthy had warned in February that the company was expecting “modestly higher” write-offs due to higher prices.
As Disney tries to develop streaming, its traditional television business is facing obstacles. The networks’ operating income fell 35% from a year earlier, to $1.8 billion, in part due to increased sports programming and production costs related to the NFL and college football playoffs on ESPN. , and lower advertising revenue on ABC and on the television networks it owns.
It was also announced that a platform combining Hulu and Disney+ will launch in late 2023.something that could not reach Argentina since locally the current agreement merges Star +, which incorporates ESPN programming, and Disney +.
Source: Ambito
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