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Disney beats earnings forecast as shares surge

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Walt Disney exceeded Wall Street’s earnings projections, propelled by robust performances at its theme parks and ongoing cost-cutting measures, despite falling short of revenue estimates.

In addition to surpassing earnings expectations, Disney’s board of directors approved a $3 billion share repurchase program for the current fiscal year and announced a dividend of 45 cents per share, payable on July 25 to shareholders of record on July 8.

This represents a 50% increase from the previous dividend paid in January.

The company reported earnings of $1.22 per share, excluding certain items, surpassing analysts’ consensus forecast of 99 cents per share for the October to December period.

Following the earnings report, shares surged more than 7% after hours to $106.70.

Relatively flat

Although quarterly revenue remained relatively flat compared to the previous year, at $23.5 billion, it fell short of projections of $23.6 billion.

Disney disclosed that it had slashed $500 million in costs across its business during the quarter and remains on track to achieve or exceed $7.5 billion in savings by the end of the fiscal year.

The conglomerate faces pressure from activist investor Nelson Peltz, who is advocating for increased profitability in its streaming business, enhanced box office performance for its movies, and greater transparency regarding plans to bolster ESPN as a dominant digital platform.

CEO Bob Iger expressed confidence in Disney’s trajectory, stating, “Just one year ago, we outlined an ambitious plan to return the Walt Disney Company to a period of sustained growth and shareholder value creation. Our strong performance this past quarter demonstrates we have turned the corner and entered a new era of growth for our company.”

Record revenue

Disney’s Experiences unit, encompassing theme parks and consumer products, achieved record revenue, operating income, and operating margins.

The company reaffirmed guidance that its streaming business would reach profitability by September, with streaming operating losses reduced to $138 million in the quarter, a significant improvement from the previous year’s nearly $1 billion loss.

Despite shedding 1.3 million Disney+ subscribers, double analysts’ forecasted losses, following an October price increase, Disney remains optimistic about subscriber growth, projecting an increase of 5.5 million to 6 million subscribers in the second quarter.

The Entertainment unit’s streaming business, inclusive of Hulu and Disney+ Hotstar in India, reported revenue of $5.5 billion, slightly exceeding forecasts and marking a 15% improvement from a year ago.

7% decline

However, overall revenue for the Entertainment segment, covering Disney’s traditional TV business, streaming, and film, declined by 7% from a year earlier to $9.98 billion, impacted by lower ad revenue at ABC and decreased fees from cable subscriber losses.

Disney’s sports division saw a 4% revenue gain from a year ago, driven by ESPN, the ESPN+ streaming service, and Star in India, although operating losses deepened at Star in India.

Notwithstanding challenges, Disney’s theme parks unit reported robust revenue of $9.1 billion and operating income of $3.1 billion, buoyed by successful openings at Hong Kong Disneyland and Shanghai Disney Resort.

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Portal between countries shut down after international flashing

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An international video portal has been forced to shut down after an OnlyFans model reportedly flashed passersby from across the globe.

On this episode of Ahron and Mike Live – Which would you prefer; pay rise or work perks, an international portal closes, the military reveal a submarine stingray and are you on a top or bottom burger bun?

Ticker’s Ahron Young & Mike Loder discuss. #featured #trending

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Trump and Biden agree to a double debate showdown

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Former President Donald Trump and current President Joe Biden have agreed to participate in two debates in June and September.

On this episode of Ticker Hot Shots – Former President Donald Trump and current President Joe Biden agree to a double debate, Trump backs AUKUS, MacDonalds creates a price friendly meal and Prince Harry faces the financial music. #featured #trending #hotshots

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Is cloud technology the solution for every organisation’s needs?

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Amidst the dominance of cloud technologies in the tech landscape, questions are rising over applicability and its cost implications.

As businesses increasingly migrate to cloud technologies, skepticism is brewing over whether it’s the optimal solution for every organisational need.

Additionally, the notion of “free” cloud services is being challenged, highlighting the importance of understanding the true costs and benefits associated with cloud adoption.

Harsha Patil, Engineering manager, California USA shares his key insights on the cloud conundrum. #featured

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