Disney's streaming business turns a profit in first financial report since challenge to Iger

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The Walt Disney Co. moved to a loss in its second quarter, hampered by significantly higher restructuring and impairment charges, but its adjusted profit topped Wall Street’s view and its streaming business was profitable

The Walt Disney Co. swung to a loss in its second quarter because of restructuring and impairment charges, but its adjusted profit topped expectations and its streaming business turned a profit. Theme parks also continued to do well and the company boosted its outlook for the year.

While Disney said Tuesday that it foresees its overall streaming business softening in the current quarter due to its streaming service in India, Disney+Hotstar, it expects its combined streaming businesses to be profitable in the fourth quarter and to be a meaningful future growth driver for the company, with further improvements in profitability in fiscal 2025.

Disney+ core subscribers climbed by more than 6% in the second quarter.

“Looking at our company as a whole, it’s clear that the turnaround and growth initiatives we set in motion last year have continued to yield positive results,” CEO Bob Iger said in a prepared statement.

It’s the first financial report since shareholders rebuffed efforts by activist investor Nelson Peltz to claim seats on the company board last month, standing firmly behind Iger as he tries to energize the House of Mouse.

Revenue at Disney's domestic theme parks rose 7%, while its theme parks overseas reported a 29% increase.

But Disney acknowledged wrestling with higher costs at its theme parks during the quarter due to inflation.

The company said that there was increased spending by guests at Walt Disney World due to higher ticket prices, while Disneyland guests boosted their spending due to