Results
Disney $DIS+0.8% revenue increased 3.8% year-over-year. The company generates revenue from two segments, media and entertainment and parks, experiences and products
Media and Entertainment segment revenue decreased 0.8% year-over-year to $14 billion. Analysts were expecting USD 14.36 billion.
Parks, Experiences & Products segment revenue increased 13% year-over-year to $8.33 billion. Analysts were expecting USD 8.25 billion.
The media and entertainment segment is divided into pay-TV and direct-to-consumer (DTC), which is what one subscribes to directly from Disney. This category includes, for example, the streaming service Disney+ or Hulu. Analysts expected the DTC segment to realise a loss of EUR 777.7 million. The DTC segment realized a loss of only USD 512 million. USD.
The number of Disney+ subscribers reached 146.1 million against expectations of 154.8 million.
Outlook
For fiscal year 2023, the company expects to spend USD 27 billion on content creation. Content creation expenditures typically account for approximately USD 30 billion. These savings are due in part to the termination of collaborations with certain writers and actors in connection with the Hollywood strikes.
Word from the CEO
CEO Robert Iger said, "This is my eighth month back in the CEO role and we have already made many important changes that are reducing costs and moving us toward surpassing our stated goal of saving $5.5 billion."
Analyst commentary
An analyst from Citi said, "While the number of DTC (Direct-to-Customer) subscribers fell short of analysts' expectations, but the results are broadly in line. Disney has indicated that the tipping point in terms of DTC should occur by the end of fiscal 2024."
An analyst from Vital Knowledge said, "Disney has done well in cutting costs, which helps shore up the bottom line even during a difficult period. It's nice to see a small loss from streaming, but that's offset by pressure in subscribers.
An analyst at Truist Securities said: 'The results include a profit that is above analysts' expectations but subscriber numbers are low.
The results are solid. I have $DIS+0.8% stock in my portfolio and now I will wait for the stock to start rising😁
Nice results. But I'm still waiting for them to drop on occasion and I'll buy for less. Maybe I'll miss it after all.
For me satisfaction,up in my opinion will go;) and then it will be even more satisfaction :)
For me its all ok trying to save the pity of those subscribers, but either way Disney will eventually go up I trust him.
Agreed, I'm also quite happy, it can be better but here hold it will be slower, I believe about it then but consistent growth. I'm still holding and maybe thinking I should have bought more for the $85 or so. 😁
For me, the results here are about right. Sure, it could be better every time, but it could also be worse. I'll continue to hold the stock.