Disney posts mixed results for quarter plagued by streaming woes, restructuring costs
Disney+ subscriber growth has slowed, with the company losing 7.4% of its users in the most recent quarter.
Disney
The company reported mixed results for its fiscal third quarter despite the ongoing streaming issues and the massive restructuring costs incurred by removing content from their platforms.
The company reported 146.1 million Disney+ subscriptions during the latest quarter, which is a 7.4% drop from the previous quarter. StreetAccount estimates that Wall Street expected Disney to report a loss of only 151.1 million subscribers.
Disney+ Hotstar saw the largest drop in subscribers, with a 24% decrease after losing the rights to Indian Premier League games.
The company reported $2.65 billion of one-time charges, impairments and other costs. This led to the company posting a rare quarter loss. Disney attributed the majority of these charges to 'content impairments,' which were a result of removing content from its streaming platforms and terminating third-party license agreements.
The results are:
EPS:
According to Refinitiv's consensus survey, $1.03 per adjusted share was expected, as opposed to 95 cents.
Revenue:
According to Refinitiv, the market is expecting $22.5 billion, but has only seen $22.33 billion.
Disney+ Total Subscriptions
StreetAccount: 146.1 million versus expected 151.1 million
Disney reported a quarterly net loss of $460m, or 25 cents a share. This is down from the net profit of $1.41bn, or 77c per share in the same period last year. The company's adjusted earnings per share were $1.03.
Revenue increased by 4%, to $22.33 Billion. This was just below Wall Street's estimate of $22.5 Billion.
The company's parks, experiences, and products division saw its revenue increase by 13% to $8.3 Billion during the third quarter. Disney's international parks saw growth during the quarter. However, domestic parks saw a decline in hotel room sales and attendance, especially Walt Disney World, in Florida.
Similar slowdowns have been observed by
Comcast's
Universal theme parks are located in Florida.
Investors are eager to learn more about how Iger will fix Disney's TV division and deal with the declining number of Disney+ subscribers ahead of Disney's earnings report.
Disclosure: Comcast owns NBCUniversal, CNBC and NBC.
Sarah Whitten CNBC