Disney Cuts Streaming Loss, Takes $2.4B Charge For DTC Content Purge In Mixed June Quarter; Bob Iger Sees Cost Savings Topping $5.5B Target
deadline.comDisney saw direct-to-consumer losses shrink and adjusted EPS top estimates for the three months ended in June as CEO Bob Iger said the company’s on track to exceed $5.5 billion in anticipated cost savings.
Total revenue of $22.3 billion (down 2%) was shy of forecasts. Linear television was softer — a trend Iger called out in a controversial CNBC interview last month.
A jump in Parks & Experiences, about a third of Disney’s sales, was driven by international parks and cruise lines. Domestic parks saw profit fall with lower attendance at Walt Disney World.
There was a big $2.44 billion content impairment charge related to removing content from its DTC service and terminating third-party licensing agreements, plus another $210 million hit from severance.
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