Disney financial results
Disney has responded to its critics by posting results that beat expectations and presenting a strong profit outlook for the year, as Bob Iger's cost-cutting measures bear fruit.
"Although Disney+'s subscriber numbers missed estimates, its losses narrowed significantly to $138 million, below the expected $400 million, offering investors a glimpse of improvement. The outlook for profitability in its service streaming will serve as an important catalyst for the stock, as it is something that investors have been eagerly anticipating, especially with Netflix demonstrating its financial strength in its latest results.
Since taking over, Bob Iger's strategies were considered too ambitious. However, today's results show that their efforts are paying off, and Disney is starting to regain some of its magic. 2024 won't be entirely a bed of roses, but it is laying the foundation for a more prosperous year, which will improve investor sentiment.
Other points:
- The 50% increase in its dividend along with the $3 billion share buyback should also be a hit with investors despite the stock trading around 10-year lows.
- It has been a difficult period for Disney, as its core business struggles and its streaming service Disney+ loses ground to Netflix.
-Disney's plan to launch a supersports streaming service with ESPN, Fox and Warner Bros. may also prove prudent as the world abandons cable and our population consumes more sports content.
