Quarterly revenue was $22.46 billion, missing analyst expectations and prompting a 5% drop in premarket trading. The entertainment division, including streaming, linear networks, and theatrical, saw a 6% revenue decline. Streaming growth lifted Disney+ and Hulu to 196 million subscriptions, up 12.4 million from the prior quarter. Linear networks fell 16% to $107 million and operating income declined 21%. Theatrical releases also weakened, contributing to mixed results. Domestic linear declines reflected lower advertising, viewership decreases, and a $40 million negative impact from political advertising. Sports revenue rose 2% to $4 billion while operating income dipped to $911 million. Ongoing carriage disputes and cord-cutting pressured advertising and affiliate revenues, with a YouTube TV blackout estimated to cost about $60 million.
"Disney reported $22.46 billion in revenue for the quarter, which just missed analyst expectations and resulted in a 5% drop in premarket trading on Thursday. The entertainment division-which includes the company's streaming, linear networks, and theatrical business-saw a 6% drop in revenue. Streaming did see some gains: Disney+ and Hulu ending the quarter with 196 million subscriptions, an increase of 12.4 million subscribers from the previous quarter."
"For sports, Disney reported a 2% increase in revenue to $4 billion, while operating income of $911 million, a decrease of $18 million compared to the year before with domestic ESPN operating income declining 3%. The company cited that "higher marketing and programming and production costs" were partially offset by higher advertising and subscription and affiliate revenues."
Read at Fast Company
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