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Disney earnings topped its expectations, thanked to the profits at ESPN+ and a continued growth at theme parks, but a decline in ad revenue weighed on the top line.
Sharing its plans, the entertainment giant said it plans to continue to “aggressively manage” its cost base, which involves increasing its cost-cutting measures by another $2 billion to a target of $7.5 billion.
Shares of the company rose by 4% on Wednesday till the closing bell.
The plunge in the revenues from ad was primarily from Disney’s ABC Network and other owned TV stations, which saw lower political ads in the quarter. Over the summer, CEO Bob Iger had said that the company might suggest selling its TV assets.
Meanwhile, Disney witnessed a new 7 million subscribers, compared to the previous quarter, which brings its total number of users to 150.2 million, including Hotstar. Compared with the year earlier, the streaming also narrowed down its losses.
It was expected that Disney would register a total of 148.15 million subs for the quarter. The company touted addition of the theatrical titles such as “Little Mermaid,” “Elemental,” and “Guardians of the Galaxy: Vol.3.” It also brought Star Wars series “Ahsoka” to the streaming platform.