2023-02-15
Revenue $23.512
billion.
Net profit $3 billion
Earnings per share $0.99
The first quarter earnings of 2023
was highly anticipated as it marked Bob Iger’s first quarter return as CEO of
the Walt Disney Company. Disney board and shareholders have a lot of
expectation from Bob Iger as his success in the past was long endured. 2023 is the year of austerity of Disney. Starting by laying off 7,000
employees which equivalent to 3.6% of all employees. There will be a big reorganization
by dividing business units into 3 parts consisting of
1. Disney entertainment
2. ESPN
3. Disney Parks, Experiences, and Products.
Disney plus streaming will be part of
Disney entertainment, ESPN will be separated, stand alone in sport category.
$5.5 billion is the amount
Disney want to save over the next 1-2 years. Disney plans to save $2.5 billion
in operating expenses and save $3 billion in movie business by cutting out
movies and shows that don’t make money. It limits content spending to no more than
$30 billion. Hulu, ESPN, and Disney Parks show positive sign and growing
normally. Disney Plus is losing $1.1 billion this quarter. It has 161.8 million
subscribers, down from 164.2 million subscribers last quarter. Bob Iger’s new
strategy for Disney Plus is to cut costs and focus on producing quality
contents.
