The Walt Disney Company last night reported earnings for its third fiscal quarter posting revenues of $22.3 billion, a 4% growth from the previous year, although subscribers for Disney+ were down, as was attendance at Walt Disney World.
Chief Executive Officer Bob Iger told analysts on the post-earnings call that “in the eight months since I returned, we’ve undertaken an unprecedented transformation at Disney, and this quarter’s earnings reflect some of what we have accomplished.”
A few achievements since Iger’s return that he highlighted in his comments include:
• The company was completely restructured, restoring creativity to the center of the business
• Important management changes and efficiency improvements to create a more cost-effective, coordinated, and streamlined approach to operations
• Aggressive costs reductions across the enterprise, with the company on track to exceed its initial goal of $5.5 billion dollars in savings
• The company has improved its direct-to-consumer (DTC) operating income by roughly $1 billion in just three quarters, as Disney continues to work toward achieving DTC profitability by the end of FY 2024, in a challenging environment“I’m pleased with how much we have gotten done in such a short period of time, but I also know we have a lot more to do,” Iger said. “As I’ve said before, our progress will not always be linear. But despite near-term headwinds, I’m incredibly confident in Disney’s long-term trajectory because of the work we’ve done, the team we have in place, and because of Disney’s core intellectual property foundation.”
He asserted that “moving forward, I believe three businesses will drive the greatest growth and value creation over the next five years. They are our film Studios, our Parks business, and Streaming – all of which are inextricably linked to our brands and franchises.”
In addition to discussing the company’s financial results for the third quarter, Iger offered insight on the company’s upcoming opportunities as they relate to Disney’s parks business, streaming, ESPN, and more.
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