exceeded Wall Street’s earnings expectations on Wednesday as higher attendance at its Shanghai and Hong Kong theme parks offset a decline in advertising revenue at television network ABC.
For the fiscal fourth quarter ended Sept. 30, Disney reported adjusted per-share earnings of 82 cents, topping an average forecast of 70 cents, according to LSEG data. Quarterly revenue of $21.2-billion was largely in line with consensus estimates. Disney now says it is on track to achieve $7.5-billion in annualized savings, as it aggressively manages costs.
Film and television writers ratified a new three-year contract in September, ending their 148-day work stoppage, but members of the SAG-AFTRA actors union have been on strike since July, roiling the industry’s 2024 film slate and depriving media companies of new programming to sell. Quarterly losses across Disney’s streaming services, which also include Hulu and ESPN+, narrowed to $387-million from $1.47-billion a year earlier, due to pricing increases and higher ad revenue. Disney said its streaming business remains on track to reach profitability by September 2024. The company plans to start offering a beta version of a combined Hulu and Disney+ app in December with a full launch in the spring, Iger said.
ABC network and Disney’s owned TV stations reported a drop in advertising revenue amid declining viewership. The summer movie “The Haunted Mansion” underperformed, compared with last year’s “Thor: Love and Thunder.”