In a letter to staff revealed by CNBC Disney Bob Chuckle announced the creation of the Cost Structure Committee, which also includes Director of Corporate Finance Christine McCarthy and General Counsel Horacio Gutierrez. The committee will oversee all cost saving measures in cooperation with the managers of the individual divisions of the company.
It has already been decided that hiring new employees will be very limited. – We will continue to hire a small number of the most important positions that drive our business, but we are on hold for other positions Tangled said.
announce it The authorities of the company intend to analyze general, administrative and sales expenses in terms of savings. We will look at each operational path and employee to look for savings. We expect slight job cuts to be a part of this review – pointed out.
For now, it’s decided Strong restriction on business travel. Bob Chuck emphasized that online meetings are preferred, To participate in industry conferences and other external events, each employee is required to obtain approval from a supervisor.
– We’ve already conducted a rigorous review of our content and marketing spend by working with our content leaders and their teams The head of Disney mentioned it. He emphasized that the concern did not want to have a negative impact on the quality of the production, but to ensure that “our investments are effective and bring tangible benefits to both viewers and the company.”
Disney + is expected to be profitable in 2024
The savings will help Disney better cope with the economic downturn. Bob Chuckle pointed out that all media companies must face macroeconomic uncertainty.
He declared, “These efforts will help us achieve our important goal: to deliver Disney+ profits in fiscal year 2024, and make us a more efficient and resilient company.” – He added that some of them will bring us some short-term savings and others will provide us with long-term structural benefits. https://www.wirtualnemedia.pl/wyniki/query:disney+
I fully understand that it will be a difficult process for many of you and your teams. We will have to make difficult and uncomfortable decisions. But that’s what leadership requires, thanks in advance for meeting you at such an important time – the Disney chief emphasized.
The cuts are on Twitter, Meta Platforms, and Warner Bros. Discovery
Disney is another US media and internet company that is making savings. Twitter, shortly after it was taken over by Elon Musk, said goodbye to nearly half of its 7,500 residents overnight. employees (Some of those who were fired after a few days were asked to return to the company).
Wednesday Mask books for employees to prepare for a tough time. He noted that “without significant subscription revenue, Twitter will likely not survive the next economic downturn.”
Meta platforms, owner of Facebook, Instagram and WhatsApp, It was announced Wednesday that it will be depositing more than 11,000 people, or roughly 13 percent. your employees. Mark Zuckerberg admits he overestimated the digital acceleration after the outbreak.
Warner Bros. In the summer, Discovery announced that it would abandon production of original Max Originals in Scandinavia and Central European countries. As a result, he said farewell to about 30 high-ranking directors of HBO Max in the Europe (also in Poland), Africa and Middle East region. The cuts also included dozens of people who were involved in creating the contentAs well as ongoing production, incl. I’m almost done with Batgirl.
Recently a concern Submit a synergy plan after completion this spring. WarnerMedia and Discovery mergerAt the moment, this would mean 3.2-4.3 billion USD for the company.
Disney has 164+ million subscribers
At the beginning of October, 164.1 million subscribers were using Disney+ (including the Indian Hotstar show), an increase of 12.1 million from the previous quarter. Quarterly revenue for Disney’s streaming segment (including Hotstar, ESPN+, and Hulu) is up 8%. to $4.91 billion, and operating losses increased from $630 million to $1.47 billion.
Disney + October 1 this year Excluding the much cheaper offer, Hotstar had 102.9 million subscribers, compared to 93.6 million at the beginning of July this year and 74.8 million on October 1 last year. During the year, the number of customers in the United States and Canada increased from 38.8 to 46.4 million, and in other countries – from 36 to 56.5 million (excluding the Hotstar offer available in India).
Over the year, Hotstar subscribers increased from 43.3 million to 61.3 million, ESPN+ from 17.1 million to 24.3 million, and all Hulu packages from 43.8 million to 47.2 million.
The average monthly revenue per Disney+ subscriber decreased year-over-year from $6.24 to $5.96, This is mainly due to the decrease in the US and Canada from $6.81 to $6.10. In other markets, it rose from $5.62 to $5.83, and in the case of Hotstar it fell from $0.64 to $0.48.
Average revenue for ESPN+ subscribers increased from $4.74 to $4.84 (on August 23, platform fees increased from $6.99 to $9.99).
However, in the case of the Hulu package without streaming TV, that percentage dropped from $12.75 to $12.23.
$4 billion lost streaming platforms
The last quarter Disney’s direct-to-consumer revenue, which primarily includes streaming platforms, grew 8% year over year. to $4.91 billion. Operating losses increased from $630 million to $1.47 billionwhile in terms of annual value – from 1.68 to 4.01 billion dollars.
Linear channel group of concern with revenue down 5% to $6.33 billion, operating profit increased from $1.64 to $1.73 billion. On the other hand, revenue from selling content and licenses decreased by 15%. to $1.74 billion, and operating losses in this area increased from $65 million to $178 million.
Head Disney Pop Network Disney+ announced in a press release that the Disney+ platform will generate positive earnings in fiscal year 2024.
Lots of parks and tools
The post-Soviet recovery of sovereignty continued in the Disney theme parks sector: Domestic revenue increased by 44 percent. to $5.01 billion and in foreign markets – by 55 percent. to $1.07 billion. The operating profitability also improved significantly: from $22 million to a total of $814 million.
In contrast, in the field of sales of products (including toys, clothes and gadgets with characters from Disney films and series), revenue increased by 4%. to $1.34 billion, and operating profit from $618 to $699 million.
Disney’s $3.2 billion annual profit
In total, Disney generated a 9 percent increase in quarterly revenue. to 20.15 billion US dollars, and its profitability increased slightly: at the operating level from 1.59 US dollars to 1.6 billion US dollars, and at the net level from 160 million US dollars to 162 million US dollars.
In the entire past fiscal year, the concern generated a 23 percent increase in revenue. to $82.72 billion, operating profit from $7.77 billion to $12.12 billion, and net profit from $2.02 billion to $3.19 billion.
Funding is less than analysts’ expectations
Disney only exceeded analyst expectations in terms of the number of Disney + subscribers The average forecast collected by StreetAccount was 160.45 million.
Meanwhile, analysts polled by Refinitiv expected quarterly revenue of $21.24 billion ($20.15 billion), 55 cents per share (the company reported 30 cents in earnings), and $13.9 billion in media and entertainment revenue (12.7 billion). dollar). and $7.4 billion in the amusement and products sector ($7.4 billion).
After publishing these results Disney shares fell in after-hours trading six to seven percent. At the end of Tuesday’s session, the price was $99.9, down 35.5 percent. lower than in early January.
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