Recent disagreement with shareholders show that they want Bob Chapek, current CEO of Disney to resign. However, the earnings results are in. Does it make sense to oust the CEO or to keep? The Disney stock price (today $149.47) has been volatile with recent rumors and upcoming meetings. Making the earnings results a more substantial impact to the future of Disney.
Disney Media & Entertainment Earnings (DTC)
DTC means direct to consumer, which was somewhat another business segment of The Walt Disney Company. It now formed its’ own new name called Disney Media and Entertainment Distribution. This is where you will find ESPN+, Disney+, Hulu and digital products they sell.
Unfortunately it look like Disney is looking at about $610 million in losses for investing in these services so far this quarter. An interesting twist however, is that in response to that loss, they beat all expectations in growth for these services.
For example, the Disney+ services expected 8 million new subscribers in the first quarter. They received 12 million. A 33.3% above the what they expected. So so far, it seems Disney is not doing to well if they lost $600 million, right? Well let’s take a look at the Park revenues profit and losses next.
Disney Parks Revenue Results
A new addition Bob Chapek rolled out to the Disney Parks recently is the use of Genie+. The results are in. Visitors express disagreement with the new service; however, investors are seemingly happy as they saw much more guest usage than they thought. 1 out of 2 visitors bought Genie+ or used lightning lane tickets. This helped the recent stock price surge recently from $137 to $158, an amazing recovery.
What is The Future of Disney Now?
Now that the earnings are showing great growth, will the shareholders disagreement with Bob Chapek be enough reasons to rid of his title? We do not think so. Bob Chapek Disney CEO contract is ending 2023, it could mean he will wait to step down then. Or, if he is able to make the big Disney fans happy again, there could be a chance there could be a contract renewal.