Disney’s streaming business has turned a profit for the first time as cost-cutting efforts begin to bear fruit.
The media titan posted a £37m profit for its Disney+ and Hulu division in the first three months of 2024, compared to a £468m loss in the same period last year.
This is the first time the unit, which produces shows such as Only Murders In The Building, has been in the black since the launch of Disney Plus in 2019.
Disney is pressing ahead with its cost-cutting efforts under chief executive Bob Iger, who has promised to save at least £6bn by September.
“Our strong performance this past quarter demonstrates that we have turned a corner and entered a new era for our company,” said Iger, who came out of retirement in 2022 to turn around the business.
Disney posted a £37m profit for its Disney+ division, which produces shows such as Only Murders In The Building (pictured) in the first three months of 2024.
But shares fell almost 10 per cent yesterday as bosses warned that profits will be hit by its Indian streaming service Hotstar in the next quarter.
Investors were also disappointed as its sports broadcasting business ESPN posted losses of £14 million.
Overall, Disney said revenue rose 1 percent in the quarter to £17.6 billion, while profits fell 69 percent to £523 million.
The results come weeks after the company faced a dramatic confrontation with activist investor Nelson Peltz.
Peltz pushed for a board seat after criticizing the quality of Disney’s recent content and stock price performance compared to its media peers.
But Iger won the boardroom battle after backing from the Disney family and Star Wars creator George Lucas.
Iger said Disney would “focus more on quality” with its film and television production.
Big-budget films including The Marvels and Indiana Jones And The Dial Of Destiny struggled at the box office last year.
He told Wall Street analysts: “I’ve been working hard with the studio to reduce production and focus more on quality.” That’s particularly true with Marvel.”
