Disney ended the quarter with a loss of $460 million – Kommersant
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Walt Disney Corporation revenue in the third quarter grew by 3.8% to $22.3 billion. The company ended the quarter with a net loss of $460 million against a profit of $1.4 billion a year earlier. Good growth for the quarter was shown by the amusement parks division, the number of visits to which is growing after the removal of covid restrictions. Revenue of this division grew by 13%, to $8.3 billion, and operating profit — for 11%, to $2.4 billion.
The media and entertainment division’s revenue fell 1% to $14.4 billion, while its operating income fell 18% to $1.1 billion. which Disney has been developing in recent years. Another negative sign: the number of Disney+ subscribers – one of the main parameters for streaming services – fell by 7.4% over the quarter, to 146.1 million. 24%, after losing the rights to broadcast Indian Premier League cricket. The rest of the number of subscribers decreased by 1%.
Disney has announced a fairly significant price increase for its video services – more than 20%. This is the second increase in the subscription price in the past year. Disney also stated that the goal is to make its streaming business profitable by September 2024. The statement about this proved convincing to investors – after the publication of reports in over-the-counter trading, Disney shares rose by almost 2%.
In addition, the company is already pursuing cost-cutting measures. February Disney announced about large-scale restructuring and plans to cut costs by $5.5 billion, in particular, by cutting 7,000 employees.
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