Disney increases their cost-cutting strategy by $2 billion and reports a higher-than-expected profit

Earnings at Disney surpassed expectations, owing in part to profit at ESPN+ and strong growth at theme parks, although a fall in ad revenue dragged on the bottom line.

Disney also stated that it will continue to «aggressively manage» its cost base, raising its cost-cutting initiatives by $2 billion to a target of $7.5 billion.

The company’s stock rose more than 6% on Thursday.

The decline in ad income was mostly due to lower political advertising revenue from Disney’s ABC Network and other owned TV stations throughout the quarter. Over the summer, CEO Bob Iger stated that the business would be willing to sell its television holdings.

Meanwhile, the corporation added 7 million new core Disney+ customers in the prior quarter, raising the total number of users to 150.2 million when Hotstar is included. The streaming firm also reduced its losses from the previous year.

According to StreetAccount, the total number of Disney+ customers is 150.2 million, up from 148.15 million projected.

The following are the important figures from Disney’s report:

According to LSEG, formerly known as Refinitiv, EPS was 82 cents per share adjusted vs. 70 cents per share projected. Revenue was $21.24 billion vs. $21.33 billion predicted.