Disney (DIS) is set to announce its fiscal third quarter earnings as it strives for sustainable profitability in its streaming division and aims to stabilize demand in its parks business. Here are key points and expectations regarding Disney’s performance and strategic moves:
Adjusted Structure and Business Segments: CEO Bob Iger restructured Disney into three core segments: Disney Entertainment (incorporating media and streaming), Experiences (encompassing parks), and Sports (including ESPN).
Challenges Faced: Disney has encountered hurdles such as declining linear TV business, slower parks growth, and streaming profitability issues.
Financial Expectations:
Total revenue: Estimated at $23.08 billion.
Adjusted earnings per share: Expected to be $1.19.
Revenue breakdown: Entertainment $10.37 billion, Sports $4.40 billion, Experiences $8.61 billion.
Disney+ subscribers: Projected to reach 154.55 million.
Streaming Strategy:
Disney anticipates achieving full streaming profitability by Q4 this year.
Recent price hikes for various streaming services are aimed at boosting revenue.
A new sports streaming platform with Fox and Warner Bros. Discovery will launch this fall at $42.99/month, with a separate ESPN platform in 2025.
Parks Business: Operating income for the parks segment is expected to be similar to the previous year, with concerns over global travel moderation and rising costs impacting profits.
Theatrical Success: Notable performances from recent films like “Inside Out 2” and upcoming releases like “Moana 2” and “Mufasa: The Lion King” indicate a strong theatrical presence.
Analysts’ Focus: Despite theatrical success, attention remains on parks and streaming performance, with cautious outlooks regarding parks attendance and streaming profitability.
Disney’s earnings report will provide insights into its progress in addressing these challenges and capitalizing on opportunities in its various business segments.
