- Walt Disney Co. (NYSE:DIS) stock fell in early Tuesday trading despite reporting steady revenue this year
- The media and entertainment giant announced revenues for its Q2 and six months ending March 30 grew 1 per cent to US$22.08 billion and 1 per cent to US$45,63 billion, respectively
- However, a surprise 12 per cent profit jump in its streaming entertainment division was overshadowed by a decline in its traditional TV business and weaker box office
- The Walt Disney Co. opened trading at US$107.09 per share
Walt Disney Co. (NYSE:DIS) stock fell in early Tuesday trading despite reporting steady revenue this year.
Disney stock was down 8.70 per cent as the media and entertainment giant announced revenues for its Q2 and six months ending March 30 grew 1 per cent to US$22.08 billion and 1 per cent to US$45.63 billion, respectively.
However, a surprise 12 per cent profit jump in its streaming entertainment division was overshadowed by a decline in its traditional TV business and weaker box office, lacking any significant titles released to cinemas.
Its direct-to-consumer entertainment division (including Disney+ and Hulu streaming services) reported operating income of US$47 million for the period, compared with a US$587 million loss a year earlier. But the combined streaming business with ESPN+ lost US$18 million. The division had lost US$659 million in the prior year. Revenue from traditional television business declined 8 per cent to US$2.77 billion and operating profit fell 22 per cent from a year ago.
Disney+ subscribers grew in the U.S. and Canada by 17 per cent from 46 million in December 2023 to 54 million by March 2024. This should change when we see the results of Disney’s password sharing crackdown between households.
This represents a steady track after Disney stock built itself back up from hitting an eight-year low in December 2022 around the time its on again, off again CEO Bob Iger returned to the helm after a short-lived retirement.
“Our results were driven in large part by our experiences segment as well as our streaming business,” Iger said in a news release on these results. “Importantly, entertainment streaming was profitable for the quarter, and we remain on track to achieve profitability in our combined streaming businesses in Q4.”
He added that, looking at the company as a whole, he sees it’s clear that the turnaround and growth initiatives Disney set in motion last year have continued to yield positive results.
“We have a number of highly anticipated theatrical releases arriving over the next few months; our television shows are resonating with audiences and critics alike; ESPN continues to break ratings records as we further its evolution into the pre-eminent digital sports platform; and we are turbocharging growth in our Experiences business with a number of near- and long-term strategic investments.”
The Walt Disney Company’s segments include Disney Media and Entertainment Distribution (DMED) and Disney Parks, Experiences and Products (DPEP). The DMED segment encompasses the company’s global film and episodic television content production and distribution activities.
Disney+ is the dedicated streaming home for movies and shows from Disney, Pixar, Marvel, Star Wars and National Geographic, along with “The Simpsons” and others.
The Walt Disney Co. opened trading at US$107.09 per share. Though Disney stock is down 1.05 per cent since last month, it has gained 15.87 per cent in the past year.
It has risen 2.2 per cent year to date, its stock has fallen 24.4 per cent since this time last year.
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