Disney reports small loss but sees improvement in streaming
NEW YORK: Disney reported higher revenues Tuesday on a strong performance by its theme parks division, but a write-down in the company’s India business resulted in a small loss.
Disney reported a $20 million quarterly loss following the $2.1 billion impairment in Star India. Revenues rose 1.2 percent to $22.1 billion.
The company achieved profitability in its entertainment streaming segment following subscription additions of more than six million in Disney+.
Disney said it was on track for full-year profits on the entire streaming business after years of losses. This includes the ESPN+ sports network.
The entertainment giant cited Walt Disney World Resort, Hong Kong Disneyland and the company’s cruise division as areas of strength in parks and experiences, but saw lower results at Disneyland Resort.
Disney’s profit fell in the sports business amid higher costs for college football programming.
The large impairment at Star India relates to combining its India business with India’s Reliance Industries, a deal announced in late February.
The results come on the heels of a high-profile proxy contest in which Disney CEO Bob Iger successfully turned back a challenge from activist Nelson Peltz, who had sought a board seat.
Shares of Disney fell 5.2 percent in pre-market trading. The stock has risen nearly 30 percent so far in 2024 before results were released.
Kathleen Brooks, research director at XTB, said the sharp sell-off in the stock is likely due to the substantial share price increase this year. But the market is now “recalibrating” after Disney’s mixed results, she said.