Disney Q3 Earnings: Subscribers Rise, Revenue Falls
Key Takeaways
- Disney+ subscribers exceed expectations, reaching 164.2 million.
- Overall revenue falls slightly, driven by weakness in linear TV and theme parks.
- Company remains optimistic about streaming growth, despite recent losses.
Overview
Walt Disney Co. reported its financial results for the third quarter of fiscal 2022 on Wednesday, November 10th.
The company saw a small rise in Disney+ subscribers, with the platform now boasting 164.2 million paying customers.
However, overall revenue declined slightly to $19.01 billion, primarily due to lower advertising revenue and attendance at its theme parks.
Streaming Growth
Disney+ subscriber growth was driven by strong demand for new content, including the latest Marvel and Star Wars series.
The company also credited price increases for boosting subscription revenue.
Despite recent losses in the streaming business, Disney remains confident in its long-term growth prospects.
Theme Park Challenges
Disney's theme parks continued to face challenges during the quarter, as attendance was impacted by the ongoing COVID-19 pandemic and economic headwinds.
However, the company expects attendance to improve in the coming quarters as travel restrictions ease.
Financial Outlook
Disney lowered its financial outlook for the year, citing the impact of the pandemic and the streaming losses.
However, the company still expects to achieve its long-term goal of profitability for its streaming business.
Conclusion
Disney's third-quarter results were mixed, with strong subscriber growth in streaming offset by overall revenue decline.
The company remains optimistic about its future, but faces challenges in its theme park business and its streaming profitability.
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