Disney Revenue Misses But $5.5B Cost Cuts on Track
Wednesday, 09 August 2023 04:27 PM EDT
Walt Disney Wednesday missed Wall Street's expectations for quarterly revenue but said it was on track to cut costs by more than the $5.5 billion it promised investors in February.
The entertainment conglomerate also said it fell slightly behind analyst projections for U.S. subscribers of Disney+.
Shares fell about 1% in after-hours trading following publication of the results.
Chief Executive Bob Iger, who returned for a second stint running Disney, faces formidable challenges on nearly all fronts of the entertainment empire, beyond Wall Street's mandate to make its streaming business profitable. It also is coping with an eroding television business and a movie box office that has yet to return to pre-COVID levels.
In a statement on Wednesday, Iger referred to Disney undergoing an "unprecedented transformation," including a restructuring of the company, to help it become more efficient and restore creativity. "In the eight months since my return, these important changes are creating a more cost-effective, coordinated and streamlined approach to our operations, that has put us on track to exceed our initial goal of $5.5 billion in savings," he said.
https://www.newsmax.com/finance/streettalk/disney-earnings/2023/08/09/id/1130222/
