Disney Posts Roughly Flat Quarterly Revenue as TV Declines Continue

Disney’s TV networks and movie concern struggled successful the September quarter, portion its parks and streaming businesses gained ground, a mixed effect for the amusement giant.

Revenue for Disney was $22.46 cardinal successful the quarter, which was little than Wall Street expectations, portion companywide conception operating income fell 5% to $3.48 billion, the institution said Thursday. Disney’s parks and streaming businesses—seen arsenic the aboriginal maturation engines of the company—posted nett gains.

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Disney shares fell astir 6% successful premarket trading.

Disney said it would instrumentality much currency to investors arsenic it tries to revive a banal that has been stuck successful neutral for much than 3 years. It said it would treble stock repurchases to $7 cardinal successful the fiscal twelvemonth that started successful precocious September and summation its dividend by 50% to $1.50 per share.

The company’s banal has been hovering betwixt astir $80 and $125 since aboriginal 2022 aft reaching astir $200 successful 2021.

Chief Executive Bob Iger has spent caller years moving to crook astir the company’s performance. Disney has said it would sanction a successor to Iger successful aboriginal 2026.

Disney reiterated guidance Thursday, projecting double-digit adjusted net per stock maturation successful fiscal 2026 and 2027. The institution said it expects profitability successful its streaming concern to turn to 10% successful the existent fiscal twelvemonth from astir 5% successful fiscal 2025.

The institution has faced a assortment of short-term challenges, including its continuing quality with Google’s YouTube TV that has kept Disney networks including ESPN disconnected the fast-growing work for astir 2 weeks.

Disney Chief Financial Officer Hugh Johnston said the institution had prepared for a “challenging battling” with YouTube.

“We’re acceptable to spell arsenic agelong arsenic they privation to,” Johnston said connected CNBC connected Thursday.

After its suspension of Jimmy Kimmel pursuing blimpish backlash against the late-night host, cancellations of Disney+ and Hulu doubled successful September, according to analytics institution Antenna. Disney didn’t supply accusation connected streaming cancellations successful its fiscal results.

Total subscriptions to Disney+ and Hulu roseate 12.4 cardinal during the 4th to 195.7 million. About fractional of the summation came from a caller woody offering Disney streaming apps to Charter’s cablegram customers.