Disney cost cuts exceeding targets but quarterly revenue missed

LOS ANGELES: Walt Disney on Wednesday exceeded Wall Street’s estimates on adjusted per-share earnings and said it was on track to cut costs by more than the $5.5 billion it promised investors in February.

But the company missed Wall Street targets for revenue and fell slightly behind expectations on US subscribers of Disney+, though it has significantly trimmed its losses. Chief Executive Bob Iger, who returned for a second stint running Disney, faces formidable challenges on nearly all fronts of the entertainment empire, beyond Wall Street’s mandate to make its streaming business profitable. It also is coping with an eroding television business and a movie box office that has yet to return to pre-COVID levels.

In a statement on Wednesday, Iger referred to Disney undergoing an “unprecedented transformation,” including a restructuring of the company, to help it become more efficient and restore creativity. ? “In the eight months since my return, these important changes are creating a more cost-effective, coordinated and streamlined approach to our operations, that has put us on track to exceed our initial goal of $5.5 billion in savings,” he said.