SAN FRANCISCO (AP) 鈥� Walt Disney Co. on Wednesday reported sharp profit growth for its fiscal fourth quarter while announcing an expansion of its cost-cutting drive under returning CEO Bob Iger.
The results topped Wall Street expectations and sent shares in the entertainment and theme park company up more than 3% in after-hours trading.
Disney said its net income jumped 63% to $264 million in the quarter that ended Sept. 30, up from $162 million a year earlier. Its adjusted earnings per share, excluding items largely related to the amortization of Disney's acquisitions of and , more than doubled to 82 cents in the quarter. Industry analysts had been expecting 71 cents a share, according to FactSet.
Revenue for the quarter rose 5% to $21.24 billion, up from $20.15 billion. The company credited cost-cutting and other efficiencies from restructuring as well as continued subscription growth in its streaming business. It also noted a 30% increase in operating income from its parks and similar 鈥渆xperiences鈥� compared to the prior year.
Iger following a challenging two-year tenure by his handpicked successor, Bob Chapek. He soon announced a 鈥渟trategic reorganization鈥� and cost-cutting drive that has included
In a call with analysts Wednesday, Iger said the company's focus on cost-cutting has 鈥渆nabled tremendous efficiency鈥� and the company based in Burbank, California, is on track to reduce expenses by $7.5 billion, about $2 billion more than earlier targeted.
On the streaming front, Iger said the company added nearly 7 million core Disney+ subscribers in the quarter. But he noted that Disney is also looking for ways to begin delivering more sports events via ESPN's streaming platform. Iger referred specifically to Disney's plan to bring ESPN 鈥渄irect to consumer, which is inevitable, which is going to happen,鈥� he said. 鈥淲e're planning for it.鈥�
One possibility, Iger said, would be to keep ESPN+ as part of the traditional cable bundle, but then to make additional viewing available as a la carte options. Without going into details, he alluded to the possibility of future ESPN partnerships with sports leagues that could provide ESPN with more 鈥渃ontent.鈥� Given continued decreases in cable subscribers, he said, 鈥渢his is a way to really buck that trend.鈥�
David Hamilton, The Associated Press
