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Disney’s Streaming Business Turns A Profit In First Financial Report Since Challenge To Iger

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Due to restructuring and impairment losses, The Walt Disney Co. saw a deficit in its second quarter; nevertheless, adjusted profit exceeded forecasts, and the company’s streaming division made money. The corporation raised its forecast for the year since theme parks also performed well.

Disney announced on Tuesday that it expects its combined streaming businesses to be profitable in the fourth quarter and to be a significant future growth driver for the company, with further improvements in profitability in fiscal 2025. Disney acknowledged that it foresees its overall streaming business softening in the current quarter due to its platform in India, Disney+Hotstar.

Disney+ and Hulu are part of the direct-to-consumer division, which reported quarterly operating income of $47 million, up from a $587 million loss the previous year. Revenue reached $5.64 billion, up 13%.

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Disney’s Streaming Business Turns A Profit In First Financial Report Since Challenge To Iger

The second-quarter operating deficit for the combined streaming businesses—Disney+, Hulu, and ESPN+—dropped to $18 million from $659 million, while revenue increased to $6.19 billion from $5.51 billion.

In the second quarter, core Disney+ subscribers increased by almost 6%.

However, Disney’s streaming business is improving despite its cable division losing ground. That segment’s sales decreased by 8% in the most recent quarter.

“Upon examining our organization holistically, it is evident that the transformation and expansion endeavors we initiated last year have persistently produced favorable outcomes,” Iger stated in a written statement.

During Disney’s conference call, Iger announced that the business will incorporate an ESPN tab into Disney+ by year-end, following suit with Hulu. This will provide live sports and studio content for U.S. users via the Disney+ app.

In February, ESPN, Fox, and Warner Bros. Discovery revealed their intentions to introduce a sports streaming service in the autumn that will feature content from all four major professional sports leagues and at least 15 other networks.

Iger added that the business will begin enforcing stricter measures against password sharing for its streaming service in select areas starting next month, with plans to go global in September.

Disney, like its competitors like Netflix, has high-quality streaming material, but Iger stated that the company’s current priority needs to be expanding its technological capabilities. These steps—including the password crackdown—are anticipated to increase revenue.

This is the first financial report since last month, when investors fiercely opposed activist investor Nelson Peltz’s attempts to win seats on the company board. They supported Iger’s efforts to revitalise the business following a difficult period.

While some Disney investors may have been hoping for more from the quarterly report, Thomas Monteiro, senior analyst at Investing.com, noted that “the company has tilted its operation back to its core business model, which is more conservative by nature.”

Monteiro concentrated on the business’s attempts to profit from its streaming section.

“Amidst Hollywood’s massive strike period, the big surprise of the day came on the streaming front, which finally managed to bring profits – way ahead of predictions,” stated Monteiro. “This suggests that the more global, low-production-cost Netflix-like model is probably the best course of action for an organization that needs to reevaluate its overall growth expectations.”

Disney’s theme parks abroad recorded a 29% increase in revenue, while its domestic theme parks saw a 7% gain.

However, Disney admitted that the quarter’s higher theme park expenses resulted from inflation.

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Disney’s Streaming Business Turns A Profit In First Financial Report Since Challenge To Iger

The business reported that while visitors to Disneyland raised their spending due to higher ticket and hotel room prices, guests at Walt Disney World increased their spending due to higher ticket prices.

The November debut of World of Frozen, a portion of the park including attractions based on the well-known “Frozen” films, helped Hong Kong Disneyland overseas.

Like many other tourist spots, Disney is still used to post-pandemic visitation.

Chief Financial Officer Hugh Johnston stated on the call, “We are seeing some evidence of a global moderation from peak post-Covid travel, even though consumers are still traveling in record numbers and we are still seeing healthy demand.”

Disney lost $20 million for the quarter that ended on March 30, or one penny per share. In contrast, the company made $1.27 billion in profit a year prior, or 69 cents per share.

Charges for restructuring and impairment increased to $2.05 billion from $152 million during the same period last year.

After deducting charges and other things, adjusted earnings came in at $1.21 per share, well exceeding the $1.12 per share projected by Zacks Investment Research’s panel of experts.

Disney announced that it has revised its full-year adjusted profits per share growth forecast to 25% in light of its second-quarter results. Before, it had projected growth of at least 20%.

The Burbank, California-based company’s revenue increased to $22.08 billion from $21.82 billion in the previous year, but it fell short of $22.13 billion in Wall Street projections.

Disney didn’t release any major movie titles in the second quarter compared to the same period last year, which included the release of “Ant-Man and the Wasp: Quantumania,” which caused content sales and license revenue to drop by 40%. The continuous release of “Avatar: The Way of Water,” released in December 2022, also contributed to the outcomes from a year ago.

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Disney’s Streaming Business Turns A Profit In First Financial Report Since Challenge To Iger

Over 8% of the shares dropped during morning trade.

The Walt Disney Company reported in February that it was implementing “significant cost reductions,” in the first quarter of that year, it cut its selling, general, and other operations expenses by $500 million. In 2023, the corporation laid off thousands of workers.

In a state court battle over Walt Disney World’s future development after the Florida governor took over the theme park resort’s governance, friends of Governor Ron DeSantis and Disney came to a settlement deal in March.

Actors’ Equity Association, the union that represents character performers at Disneyland in California, said last month that they had submitted a petition to be recognized as a union.

SOURCE – (AP)

Kiara Grace is a staff writer at VORNews, a reputable online publication. Her writing focuses on technology trends, particularly in the realm of consumer electronics and software. With a keen eye for detail and a knack for breaking down complex topics, Kiara delivers insightful analyses that resonate with tech enthusiasts and casual readers alike. Her articles strike a balance between in-depth coverage and accessibility, making them a go-to resource for anyone seeking to stay informed about the latest innovations shaping our digital world.

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Their Nissan SUV Was Parked In The Driveway. Then It Caught Fire And Exploded

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Nissan | CNN Image

Vicki Hill was awakened early on May 14 by explosions outside her Bethesda, Maryland, house. Later, she discovered that the 2015 Nissan Murano family SUV’s airbags were to blame for the loud bangs. It was on fire.

“I thought someone was trying to get into our house with a sledgehammer and I woke my husband up and I said something’s wrong,” she stated on CNN. “And he ran downstairs and shouted up, ‘Call 911, the car’s on fire!'”

The family gave CNN a video from their home’s doorbell camera, which shows smoke before the fire bursts and engulfs the automobile.

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Nissan | Houston Press Image

Their Nissan SUV Was Parked In The Driveway. Then It Caught Fire And Exploded

The cause of the fire in the Murano is unknown. Nissan is investigating the fire, and the National Highway Traffic Administration is also gathering information.

“The safety and security of our customers is our primary concern,” a Nissan spokeswoman stated in response to an email inquiry about the fire. “We have opened an investigation into this incident.”

Nissan recalled the Hills’ Murano in 2016 and 2019 to address a fault that may cause brake fluid to leak and create a fire even when the vehicle was parked. Owners were instructed to park their vehicles outside and away from buildings until the problem was resolved due to fire hazards.

A search on the NHTSA’s website revealed an outstanding unrepaired recall on the Hills’ Murano. According to the couple, a local fire investigator concluded that the unrepaired recall may have caused the fire. But the Hills recall having the service done and provided CNN with a snapshot of a receipt from a nearby Nissan dealership proving the repair was completed. CNN has not validated the receipt’s authenticity.

The Hills stated that because the recall work had been completed, they did not consider the potential of a fire.

Philip Hill had been working on the garage, so the couple’s two automobiles were parked in the driveway. Otherwise, the Murano would have been parked in the garage beside the home.

nissan

Nissan | DLJ Image

Their Nissan SUV Was Parked In The Driveway. Then It Caught Fire And Exploded

“As you can see from the video, that vehicle is so close to the house,” Philip Hill explained to CNN. “Minutes later, the house could have gone up.”

According to reports, the garage door melted due to the fire. The Hills credit a neighbor’s dog for saving them and their three children. After being alerted by her dog, the neighbor called 911 before the Hills arrived

The powerful flames from the burning Nissan also destroyed the side of the family’s other vehicle, a 2012 Mercedes C-class, rendering it useless.

Initially, the Hills were frightened that they had been victims of vandalism. However, they stated that the video evidence from their Nest doorbell camera clearly showed the truck suddenly combusting.

nissan

Nissan | Houston

Their Nissan SUV Was Parked In The Driveway. Then It Caught Fire And Exploded

According to Hills, Nissan seized possession of the Murano on Wednesday to conduct a more thorough inspection.

Vehicle fires are not uncommon, as shocking as the Hills’ circumstance appears to be. According to the National Fire Protection Association, there will be approximately 188,500 automobile and truck fires in the United States in 2022, an average of more than 500 daily. According to the National Fire Protection Association, vehicle fires killed 610 civilians that year.

SOURCE – (CNN)

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U.S. Stock Markets Closed for Memorial Day on May 27

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U.S. Stock Markets Closed for Memorial Day on May 27

(CTN News) – The U.S. stock market will be closed on Monday, May 27, for Memorial Day.

The Nasdaq and New York Stock Exchange will be closed on Monday and reopened on Tuesday, May 28. According to the Securities Industry and Financial Markets Association, the U.S. bond market will close at 2 p.m. ET on Friday, May 24.

Memorial Day is one of numerous holidays in the United States commemorates and honors the military. Originally known as “Decoration Day,” it was established in the 1860s to honor those who died while serving in the military.

After Memorial Day, Wall Street will resume regular operations until mid-June. The next scheduled stock market closure is on Wednesday, June 19th, in honor of Juneteenth.

United States stock market 2024 holiday schedule

Markets will be closed for the following holidays:

  • Memorial Day: Monday, May 27
  • Juneteenth: Wednesday, June 19
  • Independence Day: Thursday, July 4 (markets also close at 1 p.m. ET on July 3)
  • Labor Day: Monday, Sept. 2
  • Thanksgiving: Thursday, Nov. 28 (markets also close at 1 p.m. ET on Nov. 29)
  • Christmas: Wednesday, Dec. 25

Memorial Day Traditions

Historically, Memorial Day has served as the unofficial start of summer. Thousands of students have the day off from school, and office workers enjoy a long weekend. As well as honoring fallen military heroes, it is a time for gatherings, barbecues, and outdoor activities.

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Boeing’s 1st Astronaut Flight Now Set For June After A Review Of Small Leak On New Capsule

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Boeing | AP News Image

CAPE CANAVERAL, Florida – Boeing is now aiming for its first human launch in early June, having spent the previous two weeks dealing with further issues with the space capsule.

Despite a propulsion system leak, officials from Boeing and NASA have assured that the Starliner spacecraft is equipped to safely transport two test pilots to the International Space Station. The minor helium leak, identified following the initial launch attempt on May 6, was promptly addressed and resolved, demonstrating the commitment to safety.

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Boeing | Medium Image

Boeing’s 1st Astronaut Flight Now Set For June After A Review Of Small Leak On New Capsule

Engineers suspect a faulty rubber seal the size of a shirt button and claim that even if the leak grows, it can be fixed in flight. According to NASA’s commercial crew program manager, Steve Stich, all of the capsule’s other seals checked out, prompting officials to set the launch date for June 1.

This will be Starliner’s third test flight. Demos in 2019 and 2022 had no one on board. Boeing was forced to repeat the empty trip the first time due to software and other issues.

If not for the Atlas V rocket’s faulty valve, which halted the first countdown, Starliner would have launched from Cape Canaveral earlier this month, with the leak discovered in orbit, according to Stich. Officials said that flight controllers would have handled the leak, and the astronauts would have been safe. Helium is utilized to pressurize the fuel lines of the propulsion system, which moves the capsule in flight.

boeing

Boeing | Washington Times Image

Boeing’s 1st Astronaut Flight Now Set For June After A Review Of Small Leak On New Capsule

Engineers now know where the leak is, which, according to Boeing program manager Mark Nappi, will help them improve the system in the future.

“Remember that this is a test flight. “We are still learning,” Nappi told reporters.

According to Stich, the discovery of the Starliner leak revealed yet another issue — “a design vulnerability” in the propulsion system in the improbable scenario of a series of failures. He said that the crew had devised workaround measures to safely remove the capsule from orbit at the end of the trip if such issues emerged.

“We’re not going to fly until we’re sure we’re safe,” NASA Associate Administrator Jim Free stated.

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Boeing | CTV News Image

Boeing’s first astronaut flight is now scheduled for June following a review of a minor leak in the new capsule.

Boeing’s Starliner capsule has already been years late carrying passengers to the International Space Station for NASA. SpaceX has launched crews since 2020. NASA wants both companies to provide taxi service to support each other.

SOURCE – (AP)

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