Disney Earnings: Disney+ Subscribers Dwindle — But Streaming Unit Beats Estimates

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Narrowing financial losses in Disney’s streaming unit helped it exceed expectations for profits during its latest quarterly earnings report, as the entertainment giant contends with turbulence while struggling to return profits to prior glory.

Disney’s streaming unit beat expectations even as it shed 12 million Disney+ subscribers, according its latest quarterly earnings report released Wednesday afternoon, as the entertainment giant contends with turbulence while struggling to return profits to prior glory.Disney’s $22.33 billion of revenue and $1.03 earnings per share largely tracked consensus analyst estimates of $22.5 billion and $0.96, respectively, as tracked by FactSet.

The conglomerate’s park and linear television units continued to beef up the bottom line, as the units’ $1.1 billion and $1.9 billion in quarterly operating profit were in line with expectations, respectively, while Disney bled $512 million in its flashier direct-to-consumer media business including Disney+, ESPN+ and Hulu, far below projections of a $758 million loss.

The company reported a staggering 12 million decrease in Disney+ subscribers, though its subscriber loss in the U.S. and Canada was a milder 1%. Disney incurred $2.7 billion in restructuring costs during the quarter in which the company concluded its round of roughlyShares of Disney registered a roughly 1% in after hours trading as investors digested the mixed-bag report.Disney’s earnings release comes amid a turbulent stretch for the company’s stock, which is down 20% over the last five years, far underperforming the S&P 500’s roughly 60% return over the timeframe.

 

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