Disney Today is the king of entertainment. However, that doesn’t mean the company is immune to the problems currently plaguing the entertainment industry. Thus, the mouse company reported a higher-than-expected loss last quarter, That caused Disney’s stock market to fall.
The benefits of the pandemic are gone, and now companies have to contend with a drop in profits compared to what they’ve seen in the past two years. Thus, Disney is expected to post a loss of $1.1 billion in the last fiscal quarter. unfortunately, Disney+, Hulu and ESPN+ accounted for $1.5 billion in operating expenses$400 million more than expected.
The bad news doesn’t end there, as only $2.01 billion was achieved out of an expected $2.1 billion in revenue. Additionally, earnings per share were $0.30 instead of $0.51. therefore, The stock market reacted negatively to this information and Disney shares fell 10%.
Fortunately, it managed to return to normal a few hours after this report was published. Besides, it wasn’t all bad news. The report notes that Disney’s customer base has exceeded that. Originally, it was expected to close the quarter with 9.35 million users, But reached 12.1 million. Relatedly, Disney+ prices increase in the US. Similarly, there will be an Indiana Jones series for this platform.
Editor’s note:
It is clear that the benefits of the epidemic are in the past. Now the companies have to deal with the loss of users and a small amount of profit. While this is logical, it seems that the stock market and shareholders are only interested in seeing big numbers regardless of the global context.
Through: yahoo
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