Walt Disney and Co. (DIS) lost about 12 millionඣ Disney+ streaming🌳 subscribers, took a big hit due to restructuring costs, and missed revenue projections, but its third-quarter earnings per share beat analysts' expectations.

Disney's reported a net loss of $460 million or 25 cents a share for the quarter, compared to a $1.4 billion profit, or 77 cents per share, for the same period last year, primarily driven by a $2.65 billion restructuring and impairment charge.

Diluted 澳洲幸运5官方开奖结果体彩网:earnings per share (EPS), excluding certain items, were higher than expected at $1.03 versus 95 cents per share forecasts. Revenue of $22.33 billion was up 4% on the year but lower than analysts' expectations for $22.5 billion.

Revenue was driven by a 13% gain in the company's parks, experiences, and products segment, with a 1% drop in media and entertainment distribution year-over-year. The company posted an 澳洲幸运5官方开奖结果体彩网:operating loss (OL) of $134 million, driven by a $512 million loss in the direct-to-consumer streaming segment but narrowed from $1.06 billion a year ♎ago.

Disney's Subscriber Attrition Is A Problem

As of July 1, 2023, Disney+ and Disney+Hotstar had 146.1 million subscribers, down 7.4% from the previous quarter and roughly 4% lower than the year-ago quarter.

Disney+ Hotstar disappointed analysts with a sharp drop in subscribers over the last year of 12.5 million, or 24%, with subscriber attrition mainly driven by the loss of rights to broadcast a cricket tournament—the Indian Premier League.

While it has failed to stem the outflow of subscribers, Disney is trying to boost subscription revenues and offset some of its content costs through higher subscription pricing. On Wednesday, it announced an almost 27% hike in the monthly cost of its ads-free Disney+ plan to $13.99 per month.

Iger's Plan For Disney Revival On Track But At A Cost

CEO Bob Iger, who just had his contract extended to 2026, said the transformation going on at the company has it "on track to exceed our initial goal of $5.5 billion in savings," while improving 澳洲幸运5官方开奖结果体彩网:direct-to-consumer operating income "by roughly $1 billion in just three quarters."

But that restructuring came ඣat a cost this past quarter when Disney accrued $2.65 billion in restructuring and impairment charges—$2.44 billion in charges pertaining t🦩o removing certain content from its streaming platform and another $210 million in severance. That was a huge jump from impairment charges of only $42 million in the previous quarter related to its operations in Russia.

Disney's AI Bet And Possible Strategic Investments

A new initiative has been to set up an 澳洲幸运5官方开奖结果体彩网:artificial intelligence task force to explore how it can be applied across the company's business segments, Reuters reported this week. There was also an announcement late Wednesday that sports betting company Penn Entertainment (PENN) would rebrand its business to ESPN Bet in a $2 billion partnership deal.

Meanwhile, some analysts continue to push the idea that Disney could be bought out by Apple (AAPL). Needham & Co.'s Laura Martin said that Disney “will be purchased during the next three years,” noting a potential takeover premium in the 30 to 40 percent range, The Street reported. She also cited a potential strategic fit with Apple's upcoming 澳洲幸运5官方开奖结果体彩网:Vision Pro headset, which Iger helped promote recently, according to Hollywood Reporter.