Disney reported narrower losses on its Disney+ streaming platform in the quarter ended July 1 and boosted revenues, but also shed Disney+ subscribers for the second quarter in a row.
The company, which is in the middle of a “ strategic reorganization,” has been working on cutting about 7,000 jobs to help save $5.5 billion across the company.
Disney reported 146.1 million Disney+ customers in the quarter, a 7.4% decline from the 157.8 million it reported in the prior-year quarter. Much of the drop came from India, where Disney lost broadcast rights to a popular cricket league.
The company reported a loss of 4 million streaming subscribers to its Disney+ service in the second quarter.
Overall, Disney swung to a net loss of $460 million in the quarter from a $1.4 billion profit a year earlier. The loss largely reflected restructuring and impairment charges. The company reported revenue of $22.3 billion, up 4% from $21.5 billion. Shares, which closed at $87.49, rose 4.4% to $91.40 in after-hours trading.
Bob Iger, who returned in November to take over the CEO post from Bob Chapek, has been working over the past several months to turn around Disney’s streaming business while simultaneously making sure that the financial might coming from its theme parks doesn’t waver.
Disney’s theme parks are widely viewed by industry experts as a critical component of the Burbank, California-based company’s business. To that end, Iger has prioritized reconnecting with the Disney theme park die-hards and restoring their faith in the brand. Shortly after Iger’s return, changes were rolling out at U.S. parks.
He’s also had to contend with trying to protect Disney World’s theme park district from a takeover by Florida Governor Ron DeSantis. Disney sued DeSantis in late April, alleging the governor waged a “targeted campaign of government retaliation” after the company opposed a law critics call “ Don’t Say Gay.” This month a group of mostly Republican former high-level government officials called the Florida governor’s takeover of Disney World’s governing district “severely damaging to the political, social, and economic fabric of the State.”
Disney announced last month that Iger will remain as CEO of The Walt Disney Co. through the end of 2026, agreeing to a two-year contract extension that will give the entertainment and theme park company some breathing room to find his successor.
On Tuesday it was announced that an existing sports-betting app owned by Penn Entertainment will be rebranded as ESPN Bet. Penn Entertainment is paying $1.5 billion plus other considerations for exclusive rights to the ESPN name.