Ongoing strength at its theme parks and an improving streaming business propelled The Walt Disney Co. to higher profits and revenue in its fiscal second quarter.
But the company lost 4 million streaming subscribers to its Disney+ service and its shares fell 4.5% in after-hours trading.
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The entertainment giant, which is in the midst of a “ strategic reorganization,” has been working on trimming about 7,000 jobs as part of a targeted $5.5 billion cost savings across the company.
Bob Iger, who returned in November to take over the CEO post from Bob Chapek, has been working over the past six months to turn around Disney's streaming business while simultaneously making sure that the financial might coming from its theme parks doesn't waver.
He's also had to contend with trying to protect Disney World’s theme park district from a takeover by Florida Governor Ron DeSantis. Disney sued DeSantis in late April, alleging the governor waged a “targeted campaign of government retaliation” after the company opposed a law critics call “ Don’t Say Gay.” Disney’s legal filing is the latest salvo in a more than year-old feud between the company and DeSantis.
The state of Florida has countersued Disney, with DeSantis claiming that it was doing so to level the playing field and stop the company from living under a different set of rules than other businesses in the state.
On Wednesday, Iger responded to DeSantis:
“If the goal is leveling the playing field, then a uniform application of the law or government oversight of special districts needs to occur or be applied to all special districts,” said Iger.
Iger never mentioned DeSantis by name in his comments Wednesday. But Iger picked up on his own, earlier comments he made during Disney’s annual meeting in which he suggested that the governor and state’s attack on Disney were “anti-business.”
“Our primary goal has always been to be able to continue to do exactly what we’ve been doing,” said Iger. “We have a huge opportunity to continue to invest in Florida. I noted that our plans were to invest $17 billion over the next 10 years, which is what the state should want us to do. We operate responsibly. We pay our fair share of taxes. We employ thousands of people there.”
“Does the state want us to invest more, employ more people and pay more taxes, or not?”
Shortly after Iger’s return, changes were rolling out at U.S. parks. And on Monday Disney announced that some big updates are in store for Walt Disney World next year, including the return of Disney dining plans and offering some days that annual passholders and Disney cast members can visit Walt Disney World theme parks without needing a park reservation.
Disney’s stock fell $4.69, or 4.6%, to $96.45 in after-hours trading.