Disney (DIS) earnings report Q3 2023

Members of the Writers Guild of America and the Screen Actors Guild walk the picket line outside of Disney Studios in Burbank, California, on July 18, 2023. 

Robyn Beck | AFP | Getty Images

Disney posted mixed results for the fiscal third-quarter despite ongoing streaming woes and massive restructuring costs from pulling content from its platforms.

Subscriber losses continued over the last three months, with the company reporting 146.1 million Disney+ subscribers during the most recent quarter, a 7.4% decrease from the previous quarter. Wall Street had expected Disney would report a smaller loss of 151.1 million subscribers, according to estimates from StreetAccount.

The majority of subscriber losses came from Disney+ Hotstar, where the company saw a 24% drop in users after it lost out on the rights to Indian Premier League matches.

Revenue from Disney’s media and entertainment distribution segment, which includes the company’s direct-to-consumer streaming services, fell 1% during the quarter.

The company recorded $2.65 billion in one-time charges and impairments, dragging the company to a rare quarterly loss. The majority of those charges were related to what Disney called “content impairments” related to pulling content of its streaming platforms and ending third-party licensing agreements.

Here are the results:

  • EPS: $1.03 per share adjusted, versus 95 cents per share expected, according to a Refinitiv consensus survey
  • Revenue: $22.33 billion, versus $22.5 billion expected, according to Refinitiv
  • Disney+ total subscriptions: 146.1 million, versus 151.1 million expected, according to StreetAccount

Disney posted a net loss of $460 million, or a loss of 25 cents per share, during the quarter, down from a net income of $1.41 billion, or 77 cents per share, during the year ago period. On an adjusted basis, the company earned $1.03 per share.

Revenue increased 4% to $22.33 billion, just short of Wall Street estimates of $22.5 billion.

One bright spot for the company was its parks, experiences and products division, which saw a 13% increase in revenue to $8.3 billion during the quarter. Disney saw strength at its international parks during the quarter, while domestic parks, particularly Walt Disney World in Florida, saw a slowdown in attendance and hotel room purchases.

Similar slowdowns were seen by Comcast’s Universal theme parks in Florida.

Ahead of Disney’s earnings call, investors are looking for more clarity on how Iger plans to fix Disney’s TV business and juggle the decline of subscribers at Disney+.

Disclosure: Comcast is the parent company of NBCUniversal and CNBC.

This is breaking news. Please check back for updates.

Correction: Disney recorded $2.65 billion in one-time charges and impairments for its fiscal third quarter. A previous version misstated the figure.

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