Disney dips despite first quarterly profit for Disney+ and Hulu

 

Adam Vettese, analyst at investment platform eToro, says: “Initial reaction to Disney’s latest results has been negative, with shares dropping around 5% in pre-market trading.

“A major part of the recent Disney story has been about the transformation of its entertainment segment, reducing the reliance on traditional linear networks and leaning more into a direct-to-consumer model. Crucially, streaming made an operating profit for this segment in Q2. At $47 million this is still fairly modest, but a huge improvement over the $587 million loss a year ago, with a substantial increase in the number of Disney+ subscribers helping the cause.

“The continued growth of streaming on the Entertainment side generates a fair amount of confidence that it may eventually take up the slack from declines in traditional TV and box office revenue, but the same can’t necessarily be said for Disney’s Sports segment. Increased programming costs continue to be a thorny issue, and ESPN+ actually lost subscribers from the previous quarter.”

 

BP slips amid lower energy prices

 

 

Adam Vettese, analyst at investment platform eToro, says: “Consistency quarter to quarter seems to be tough to achieve for BP at the moment with a missed forecast in Q1 following on from a very strong update last time out to round off 2023.  Lower energy prices and weaker fuels margin are to blame for the slump. Investors will be pleased to see this miss will not affect the buyback programme and the dividend is being held steady.

“Looking ahead the company aims to deliver $2 billion worth of cost savings over the next 2 years, this seems like a punchy target but if achieved will help ride out volatility in the other variables affecting the top line number. Despite the dip, shares are still up for the year and now represent an 8% discount to this year’s high seen last month.”

“The Experiences segment was a bright spot, with robust revenue and earnings growth at its parks domestically and a huge jump in profit internationally driven by results at the Hong Kong Disneyland Resort.”



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