The Walt Disney Company (DIS) reported mixed fiscal second-quarter earnings, as the entertainment giant added fewer new subscribers than expected for its streaming service, Disney+. The company closed its second quarter with 103.6 million subscribers, missing estimates for 110.3 million. Disney’s direct-to-consumer streaming platforms also lost $290 million in the quarter, though it is expected to be profitable by the end of fiscal 2024, informed Disney’s management. Revenue of $15.61 billion was reported for the quarter versus $15.85 expected. Adjusted earnings per share of 79 cents were reported versus 32 cents expected.
Disney’s media and entertainment distribution unit, which includes Disney+ as well as its legacy studio and linear networks businesses, reported revenue of $12.44 billion in the second quarter, missing estimates at $12.64 billion.
Disney’s parks and experiences segment, which was once the biggest source of profit for Disney posted a fourth straight operating loss. The losses amounted to $406 million, much higher than the $369 million loss expected.
Disney’s California theme parks just reopened at the end of last month with a 25% capacity limit and California resident-only visitor restrictions. So far this year, Disney has already begun reopening some of its most heavily visited parks, expecting a near-term turnaround in this segment.
Dow 30 Component, The Walt Disney Company (DIS), and its subsidiaries is a diversified worldwide entertainment company that operates in four business segments: Studio Entertainment, Media Networks, Parks and Resorts, and Consumer Products & Interactive Media. To learn more about this Dow 30 Component, The Walt Disney Company (DIS), and to continue to track its progress please visit the Vista Partners Walt Disney Company, Coverage Page.
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