Disney is the king of entertainment today. However, this does not mean that the company is free from the problems that currently affect the entertainment industry. In this way, the mouse company reported losses greater than expected during the last quarter, which caused a drop in stock for Disney .
The benefits of pandemic are gone, and now companies have to face a profit decrease compared to what was seen in the last two years. Thus, Disney hoped to have losses of $1.1 billion during the past fiscal quarter. Unfortunately, Disney+, Hulu and ESPN+ operating costs represented losses of $1.5 billion , $400 million more than expected.
The bad news does not end here, since of the $2.1 billion that was expected of income, only $2.01 billion were achieved. Along with this, income per share were $0.30 dollars instead of $0.51. Consequently, The bag negatively reacted to this information, and Disney’s actions decreased by 10%.
Fortunately, this managed to return to normal a couple of hours after this report. Along with this, not everything was bad news. The report indicates that the number of subscribers to Disney was exceeded. Originally, it was expected to close the quarter with 9.35 million users, but 12.1 million were reached. In related issues, Disney+ prices increase in the United States. Similarly, there will be a series of Indiana Jones for this platform.
It is clear that the benefits of pandemic have remained in the past. Now companies have to face the loss of users and a lower amount of profits. Although this is logical, it seems that the stock market and shareholders are only interested in seeing larger numbers, regardless of the world context.