Disney reports better than expected profit

Disney revealed impressive Q4 results, with theme park revenue continuing to rise and profits exceeding estimates. But there was cause for concern regarding a drop in ad revenue, mostly from Disney’s ABC Network and other owned TV stations.

With an additional $2 billion in cost-cutting measures, the company intends to aggressively manage its cost base, with a target of $7.5 billion. With the addition of 7 million new core Disney+ subscribers from the prior quarter, Disney now has 150.2 million total users, including Hotstar.

Additionally, the streaming company reduced its losses from the previous year. During the quarter, Disney’s experience division saw a 13% increase in revenues to $8.16 billion, driven by higher domestic and international park attendance and ticket prices.

Disney’s annual cost-cutting target was raised from the previous $5.5 billion set in February to $7.5 billion, and the company’s fiscal fourth quarter earnings exceeded expectations.

The company’s losses from streaming decreased to $387 million from $1.41 billion in the same period last year after it increased streaming prices for the second time this year. Disney’s stock has declined sharply, falling 5% since CEO Bob Iger’s return and roughly 3% since the year began.