The Walt Disney Company has reported better-than-anticipated earnings for the fourth quarter of fiscal 2023, bolstered by its thriving streaming business and resilient theme park revenue. Nevertheless, a decline in advertising income has somewhat overshadowed the corporation’s overall financial performance.
In its announcement, Disney disclosed an earnings per share (EPS) of 82 cents for Q4 2023, surpassing Refinitiv analysts’ forecasts of 70 cents. The company generated $21.24 billion in revenue for the quarter, representing a 5% increase. However, this figure fell slightly short of the projected $21.33 billion. This marks the second consecutive quarter in which Disney’s revenue has failed to meet expectations.
Rise in Disney+ Subscribers Notably, the number of subscribers to the Disney+ streaming service surged by 7 million, reaching a total of 150.2 million subscribers worldwide. This exceeded analysts’ predictions, which anticipated 148.15 million subscribers.
Advertising Revenue Decline Disney’s earnings report highlighted a decline in advertising revenue, primarily attributable to advertising on the ABC Network platform and Disney television stations.
Film Releases on Disney+ During the fourth quarter, Disney strategically added several films that were initially released in theaters to its streaming service. This selection included titles such as “Elemental,” “Little Mermaid,” and “Guardians of the Galaxy: Vol. 3.”
Aggressive Cost-Cutting Initiatives In addition to its financial results, Disney unveiled ambitious cost-cutting plans, with the goal of reducing expenses by an additional $2 billion. The company aims to reach a total cost reduction of $7.5 billion.
Disney’s robust performance in the streaming sector, coupled with its focus on managing costs, indicates a dynamic approach to navigating the challenges and opportunities in the ever-evolving entertainment landscape.