Global Courant 2023-05-11 01:06:54
Disney+ shed another 4 million subscribers in the first three months of 2023, marking the Disney-owned streamer’s second consecutive quarterly drop after closing 2022 with its first-ever decline. On the bright side, the Mouse House also managed to narrow its streaming business losses by $400 million, down 26% year over year.
On Wednesday, CEO Bob Iger and Co. beat Wall Street estimates for Disney’s quarterly earnings and revenue due to an impressive Jan.-March showing at the company’s theme parks. That win comes during a fiscal Q2, which concluded April 1, plagued by companywide layoffs, a looming (and now active) writers strike, and a turf war with Florida Gov. Rick DeSantis.
Disney ended the quarter with 157.8 million subscribers at Disney+, significantly missing Wall Street’s estimate of 163.17 million subs. That projected figure would have been up from the 161.8 million subs Disney+ fell to the previous quarter.
This second sub drop was driven by a 4.6 million sequential decline at Disney+ Hotstar, the version of the service offered in India and parts of Southeast Asia. Last year, Disney lost streaming rights to Indian Premier League (IPL) cricket matches, which prompted it to lower growth targets for Disney+ Hotstar in India.
In the US/Canada, Disney+ lost about 300,000 subs (to reach 46.3 million), while it added nearly 1 million in international markets excluding Disney+ Hotstar.
Hulu gained 200,000 in the quarter to stand at 48.2 million, and ESPN+ increased by 400,000 to 25.3 million.
Wall Street forecast earnings per share (EPS) of 93 cents on $21.78 billion in revenue, according to analyst consensus data provided by Refinitiv. Disney reported adjusted EPS of 93 cents on $21.82 billion in revenue.
“We’re pleased with our accomplishments this quarter, including the improved financial performance of our streaming business, which reflects the strategic changes we’ve been making throughout the company to realign Disney for sustained growth and success,” Iger said in a letter to shareholders accompanying the financial results. “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.”
Disney stock closed Wednesday at $101.14 per share. The regular US stock markets will reopen Thursday at 9:30 am ET.
Iger and other Disney executives will host a conference call at 4:30 pm ET to discuss the quarter in greater detail.
More to come…
