Disney reports 2023 Q3 earnings after market close today. Revenue was $21.24B vs. $21.33B expected. Adjusted EPS was $0.82 vs. $0.7 expected. Total Disney+ subscriber count was 150.2M vs. 148.15 expected. Disney’s streaming business has been losing money but the company expects its streaming business to reach profitability a year from now. DIS 0.00%↑ stock went up 3% after the report.
Park & Experiences continue to be the strongest segment for Disney. Revenue grew 13% YoY and operating income grew 31% YoY. ESPN revenue was flat YoY but all major segments are profitable due to aggressive cost management. I believe the overspending and over competition for streaming is over and Disney can finally turn a profit from its aggressive investment. It is still unclear what’s going to happen to its traditional media business though. Young people don’t watch TV anymore. They don’t have time for it after watching tons of content on TikTok, YouTube and Netflix/Disney+ already.