missed Wall Street earnings forecasts on Tuesday as the entertainment giant racked up more losses from its push into streaming video, sending its shares tumbling 9 per cent.
“The journey feels somewhat akin to Netflix’s path,” PP Foresight analyst Paolo Pescatore said. “Expect more bumps ahead and further losses in the streaming business as there’s no silver bullet to profitability.” Disney’s net income from continuing operations rose 1 per cent to $162-million in the quarter. Excluding some items, Disney earned 30 cents per share, missing Wall Street’s target of 55 cents per share.Disney shares dropped nearly 9 per cent to $91.35.
“We expect our DTC operating losses to narrow going forward and Disney+ will still achieve profitability in fiscal 2024,” said Chief Executive Robert Chapek. “Assuming we do not see a meaningful shift in the economic climate.” Chapek said the company had secured more than 100 advertisers across a broad range of categories for the launch, reflecting strong demand from brands eager to reach Disney’s audience.
Disney theme parks posted robust growth despite COVID-19 travel restrictions in China and Hurricane Ian forcing the temporary closure of Walt Disney World in Florida in September.
Awesome! At least it’ll help reduce the Justinflation according to Klaus Schwab’s Finance Nazi 🤡🇨🇦
And freelancer just told all Canadians to drop their subscription. That can’t possibly help.