The Walt Disney Company Q2'23 - This is the way?

And I got to be honest- This is the way.

There are still some areas of concern, but there are small and not alarming.

Here are some key points of Disney's Q2'23 results.

All the drag factors present during the long battle with the pandemic are all but gone.

Revenue and operating income before taxes all posted growth, 13% and 93% YoY.

Total segment operating income dropped 11% YoY from USD 3.7 billion to USD 3.3 billion due to the termination of certain license agreements with a customer for film and television content.

The good news that Disney previously mentioned about driving their DTC business to profitability is coming true.

The profitability of DTC further improved for Q2'23 to a loss of USD 0.7 billion.

However, one concern is the drop in Disney+ subscribers. The drop is mainly due to Disney+ Hotstar subscribers, which dropped significantly due to Disney+ Hotstar's offering after it lost the streaming rights to the Indian Premier League cricket matches.

The parks, experiences, and products have always been the key profit contributor.

Due to the termination of license agreements, the media and entertainment distribution suffered a one-off loss and dragged down the operating income.

But this move would and should drive higher ARPU from Disney+ subscriptions.

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