83.9 F
San Fernando
Wednesday, Jun 7, 2023

Disney+ Loses 4M Subscribers

The price of shares in The Walt Disney Co. has been knocked around since the company reported fiscal second-quarter financials, the first full quarter with Bob Iger, the company’s chief executive, back in charge.

The Burbank-based entertainment and media giant saw its share price drop by nearly 9% to close at $92.31 on May 11, the day after it reported its earnings. Since then the stock has risen modestly; it closed at $92.77 on May 15.

Disney matched Wall Street expectations in earnings and revenue in its fiscal second quarter, but other events caused the stock to be hit, including a loss of nearly 4 million subscribers at Disney+.

The company reported an adjusted net income of $2 billion (93 cents a share) for the quarter ending April 1, compared with adjusted net income of $2.1 billion ($1.08 a share) in the same period a year earlier. Revenue increased 13% from the second quarter of the prior year to $22 billion.

Analysts on average expected earnings of 93 cents on revenue of $22 billion, according to Thomson Financial Network.

Iger said he was pleased with the accomplishments made during the quarter, including the improved financial performance of its streaming business, which reflect the strategic changes made to realign the company for sustained growth and success.

“From movies to television, to sports, news, and our theme parks, we continue to deliver for consumers, while establishing a more efficient, coordinated, and streamlined approach to our operations,” Iger said in a statement.

The direct-to-consumer business, which includes streaming services Disney+, ESPN+ and Hulu, showed an increase in revenue of 12% to $5.5 billion for the quarter. The operating loss was trimmed by $200 million, from $900 million to $700 million.

The company attributed the change in operating cost to improved performance at Disney+ and ESPN+, partially offset by lower operating income at Hulu.

Hannah Madans Welk
Hannah Madans Welk
Hannah Madans Welk is a managing editor at the Los Angeles Business Journal and the San Fernando Valley Business Journal. She previously covered real estate for the Los Angeles Business Journal. She has done work with publications including The Orange County Register, The Real Deal and doityourself.com.

Featured Articles

Related Articles