LOS ANGELES - Walt Disney's streaming entertainment unit posted its first profit on Tuesday, two quarters ahead of schedule, and the media company raised its annual earnings per share outlook as it said turnaround efforts were yielding results.
"Our strong performance this past quarter demonstrates we have turned the corner and entered a new era for our company," Chief Executive Bob Iger, who defeated board challenges from activist investors last month, said in a statement. Iger, who came out of retirement to revamp Disney in November 2022, instituted cost cuts that are expected to reach at least $7.5 billion by the end of September. He also unveiled a 10-year, $60 billion investment in theme parks and announced plans for a stand-alone ESPN streaming app, among other efforts.
Because of costs to stream cricket, streaming entertainment will likely report a loss for the current quarter but swing back to a profit the following period, Johnston said.