Theme Parks Can't Bail Disney Out Forever
It was a rough fiscal fourth quarter for Walt Disney (NYSE: DIS). Revenue rose 9% to $20.15 billion for the three months ending in September, woefully short of the 30% increase that analysts were targeting. Adjusted earnings declined. Wall Street pros were holding out a for a 60% surge.
There was plenty of blame to go around. Revenue declined for its flagship linear networks as well as its content sales and licensing businesses. Disney's direct-to-consumer streaming business rose a mere 8%. The audiences grew briskly -- with Disney+, ESPN+, and Hulu growing paid subscriber counts by 39%, 42%, and 8%, respectively -- but average revenue per user fell sharply.
It also didn't help Disney's bottom line that the streaming segment saw its operating loss more than double, soaring 134% over the past year. Will this segment really be cash-flow-positive by the end of fiscal 2024? It wasn't all bad, but it seems as if all of the bright spots in Disney's otherwise brutal quarter are coming from its theme parks business.
Source Fool.com
