The Walt Disney Company (NYSE:DIS) saw its streaming losses narrow in its fiscal 2Q as price increases offset subscriber losses.
The company stated that adjusted diluted earnings for the fiscal 2Q 2023, which ended in March, stood at $0.93 per share, down 14% from the same period last year, aligning with Wall Street forecasts.
Disney reported group revenues of $21.82 billion, surpassing the $21.79 billion consensus estimates by a narrow margin.
In a closely-watched metric, the firm’s flagship streaming service, Disney+, faced a decline of 4 million paid subscribers, bringing the total to 157.8 million, largely due to the loss of televised cricket rights in India, the company said.
However, the division managed to reduce its losses to $659 million, compared to $1.1 billion in the previous quarter, due to a better-than-expected performance from North American users, which experienced a 20% increase attributed to price hikes in the US and Canada.
Meanwhile, Disney's Parks and Experiences segment witnessed a 17% revenue increase, reaching $7.78 billion, driven by the reopening of sites in Hong Kong and Shanghai.
CEO Bob Iger expressed satisfaction with the quarter's achievements, particularly highlighting the improved financial performance of the streaming business. Iger emphasized the strategic changes implemented across the company to drive sustained growth and success, ranging from movies to television, sports, news, and theme parks.
Disney shares dipped 2% in after-hours trading following the earnings release.
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