Q1 results for Disney
The Walt Disney Company reported Q1 results on Wednesday, and both sales and earnings were higher than anticipated by experts. CEO Bob Iger provided updates on the business’s performance and future objectives during the earnings call.
Revenue Increase
Disney announced first-quarter sales of $23.51 billion, an 8% year-over-year rise. When certain things are excluded, the diluted profits per share were $0.99.
Corporate restructuring
Iger made a key announcement about the company’s restructuring during the results call in an effort to give creative leaders back their power and hold them responsible for the company’s financial success. Disney Entertainment, ESPN, and Disney Parks, Experiences, and Products are among the parts that make up the new organizational design. These divisions are respectively led by Dana Walden, Alan Bergman, and Josh D’Amaro. The business also intends to shed an additional 7,000 employees.
Consumer-Directed Businesses
Revenue for Disney’s direct-to-consumer division in the first quarter increased by 13% YoY to $5.3 billion. Additionally, the operating loss for the quarter was $1.05 billion as opposed to the $593 million recorded for the same period previous year. Iger stressed a focus on key brands and franchises and anticipated that Disney+ will become profitable by the end of the current fiscal year (2024).
ESPN’s Prospects
ESPN is a “differentiator” and a key asset for the corporation, according to Iger, who said during the results call that the company is not exploring a spin-off of ESPN. While pointing out ESPN’s strong brand and content, he acknowledged the problems the company has in the current media environment.
Parks, activities, and goods
The first-quarter revenue for Disney’s parks, experiences, and products division increased by 21% YoY to $8.74 billion. Operating income for the division also rose by 25%, from $2.45 billion to $3.05 billion. Iger underlined his belief in the area and praised the “excellent” performance of the quarter.