“We’d like to stay in that market. But we’re also looking to see whether we can strengthen our hand obviously, improve the bottom line. In terms of advertising, we are actually finding that linear is a little bit stronger than we had expected it would be. It’s not back as much as we would like,” said Disney CEO Bob Iger in an earnings call.
In the midst of high stake discussions of a sellout or a merger in India, shares of the entertainment giant saw a 3 percent surge in after-hours trading, reaching $87.14. This rise reflects investor confidence in CEO Bob Iger’s assertive cost-cutting measures, the company’s better-than-expected gains in streaming subscribers, and Iger’s assertion that Disney has entered a new “building” phase.
Additionally, the company intends to propose the reinstatement of a dividend payment to shareholders by the close of 2023, as disclosed by interim Chief Financial Officer Kevin Lansberry.
For the fiscal fourth quarter ending on Sept. 30, Disney reported adjusted earnings per share of 82 cents, surpassing the average forecast of 70 cents according to LSEG data. The quarterly revenue of $21.2 billion aligned closely with consensus estimates.
Disney shared that it added nearly 7 million Disney+ streaming subscribers in the quarter, driven by the inclusion of “Guardians of the Galaxy Vol. 3” and the original series “Star Wars: Ahsoka.” The combined subscriber base of Disney+ and Disney+ Hotstar now stands at 150.2 million, surpassing Visible Alpha’s estimate of 147.4 million.
“Our results this quarter reflect the significant progress we’ve made over the past year,” Iger said in a statement. “While we still have work to do, these efforts have allowed us to move beyond this period of fixing and begin building our businesses again.”
As per their declarations, Disney is now progressing toward attaining annualised savings of $7.5 billion, demonstrating its proactive approach to cost management.