Disney shares fell to their lowest in more than a year and a half after the company revealed a tepid outlook for streaming subscription growth in the current quarter and said theme park visitation was also expected to moderate from its post-peak Covid.
According to Bloomberg, CFO Hugh Johnston said in an investor call that the company does not expect to see growth in Disney+ subscribers in the current quarter and streaming profitability will suffer due to additional expenses for cricket rights in India. Disney bought the India business in 2019 as part of its $71.3 billion investment to acquire most of 21st Century Fox. “We are pleased with the progress we are making in streaming, although the path to long-term profitability is not linear,” Johnston told investors.
The stock fell 9.6% in New York this morning, its lowest since November 2022. This year, through yesterday’s close, shares had gained 29%.
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