Disney's Mixed Quarter: Streaming Success Amid Network Struggles

Disney reported mixed results for its fourth quarter with strong performance from streaming services and theme parks offsetting a weaker showing from its TV networks and some films. The company is also navigating subscription challenges and succession planning as it seeks to maintain growth.

Disney's fourth-quarter results are a tale of contrasts, with robust growth in streaming services and theme parks only partially offsetting weaker performance from its traditional TV networks and film releases. The company earned $1.31 billion, or 73 cents per share, a notable increase from the $460 million reported in the same period last year.

Revenue, however, fell slightly short of Wall Street expectations, at $22.46 billion compared to the anticipated $22.86 billion. Disney's direct-to-consumer business, encompassing Disney+ and Hulu, showed impressive growth, with an 8% revenue increase and a surge in subscriber numbers domestically and internationally.

Amid these financial dynamics, Disney is on the lookout for CEO Bob Iger's successor. With a committee in place since 2023 and leadership helmed by Morgan Stanley Executive Chairman James Gorman, Disney is considering both internal and external candidates for the role. Iger's contract, however, extends through the end of 2026, allowing some leeway for a well-considered decision.

(With inputs from agencies.)