Disney reported better-than-expected earnings per share in the March quarter, but its stock price still fell by 9.5% to $105.41 per share. Despite the growth in its theme parks business, projections for the next quarter suggest little change from the previous year due to decreased global travel following the COVID-19 pandemic and rising costs and inflation. The linear TV business, excluding ESPN, experienced an 8% decline in revenue and a 22% fall in operating income, mainly due to factors like nonrenewal of carriage agreements and lower advertising revenue. However, Disney’s streaming segment showed signs of progress with Disney+ and Hulu platforms reporting their first-ever operating profit. Despite this development, Disney still reported an overall net loss for the quarter due to a one-time charge of $2.05 billion for goodwill impairments related to Star India and unspecified entertainment linear networks. CEO Bob Iger acknowledged that the road to profitability in streaming will not be straightforward.
Disney’s Theme Park Business Booms Despite Global Travel Concerns, But Stock Price Still Tumbles; Streaming Earns First-Ever Operating Profit Amid Rising Costs and Inflation.
