In its latest earnings report, the Walt Disney Co. demonstrated significant progress in narrowing losses within its streaming business. This development serves as a crucial step towards Chief Executive Bob Iger’s ongoing efforts to transform the media giant’s financial outlook.
Despite facing increased pressure from activist investors, Disney (DIS) exceeded expectations in its fiscal first quarter by reporting smaller-than-anticipated losses in its streaming sector. Formerly referred to as its direct-to-consumer unit, streaming losses amounted to $138 million, a substantial decrease from the $984 million loss recorded the previous year. Analysts had initially projected losses of around $419 million, as stated by FactSet.
While Disney has made significant progress this quarter, challenges remain as different activist groups voice their opinions on the direction of the company. Trian Partners, led by activist Nelson Peltz, expressed their dissatisfaction in an email statement, stating that they have seen this situation before and were unsatisfied with the outcome.
Despite these challenges, Team Iger is finally gaining momentum in Disney’s turnaround efforts. This positive development was reflected in the market, with Disney’s shares surging nearly 7% during after-hours trading. Investors appear to be optimistic about Disney’s progress, at least for the time being.
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