Connect with us

Stock Markets

Disney path to subscriber success is outside U.S.; way to profit less clear

Published

on


© Reuters. FILE PHOTO: A smartphone with displayed “Disney” logo is seen on the keyboard in front of displayed “Streaming service” words in this illustration taken March 24, 2020. REUTERS/Dado Ruvic

By Dawn Chmielewski

(Reuters) – Walt Disney (NYSE:DIS) Co’s quarterly results show a path for signing up a quarter billion subscribers: international expansion. But furious growth in customers outside the United States is not so certain to bring bumper profits.

Disney’s streaming gains surpassed Wall Street’s estimates for the company’s marquee Disney+ video service, but the costs of the business left some investors and analysts unimpressed.

The stock fell 3% to $102 a share after the company reported its second quarter results Wednesday, reflecting a new skepticism about the streaming business in the wake of Netflix (NASDAQ:NFLX)’s recent stumbles.

“Sure Disney added more subscribers than Netflix. On the other hand they lost a lot of money to get there,” said LightShed Partners media and technology analyst Richard Greenfield. “Wall Street is increasingly focused on profits.”

Disney+ ended March with 138 million subscribers, up 7.9 million from the previous quarter. The service is poised to launch in 42 countries this summer, said one Disney source, expanding its global reach to 106 countries. It will produce roughly 500 shows in local languages around the world to attract subscribers in these markets.

Chief Executive Bob Chapek said Disney+ is on track to reach the company’s projected target of 230 million to 260 million subscribers by September 2024.

But more than half of its quarterly subscriber gains came from Disney+ Hotstar in India, where subscribers pay an average of 76 cents a month. In the United States, customers pay $6.32 on average.

Operating losses for the company’s streaming business, which also includes ESPN+ and Hulu, rose to $877 million in the quarter – triple the loses from a year ago – reflecting higher programming and production expenses. Spending on programming is expected to increase by more than $900 million in the third quarter, as the company invests more deeply in original content and sports rights.

“We believe that great content is going to drive our subs, and those subs then in scale will drive our profitability,” said Chapek during an investor call. “So we don’t see them as necessarily counter. We see them as sort of consistent with the overall approach that we’ve laid out.”

Paolo Pescatore, an analyst with PP Foresight, predicted Disney+ will continue to grow as it expands to new markets, and offers enticing content to stream, such as the Oscar-winning animated film “Encanto.” But that may not be a financial success.

“It is apparent that there is too much focus on net adds for all providers,” Pescatore said. “Unfortunately given the nature of streaming, there will be high levels of churn which will impact all providers. This in turn will hit revenues and the bottom line.”

Stock Markets

Tata Steel says India export tax could alter output targets

Published

on


© Reuters. FILE PHOTO: A company logo is seen outside the Tata steelworks near Rotherham in Britain, March 30, 2016. REUTERS/Phil Noble

By Aditya Kalra

DAVOS, Switzerland (Reuters) – India’s Tata Steel is concerned New Delhi’s sudden decision to impose an export tax on some steel products could force it to review its production targets, if the levy remains in place for a long time, its CEO told Reuters on Tuesday.

India imposed an export tax of 15% on some steel products over the weekend, at a time steelmakers are looking to make up for tepid local demand by increasing market share in Europe, where the Ukraine conflict has hit supplies.

The taxes were part of a series of measures India has taken to rein in retail inflation, which has hit eight-year highs. But India’s top steelmakers body has warned the new duty will “adversely impact” mills that have been aiming to boost exports and widen global market share.

T. V. Narendran, chief executive of India’s biggest steelmaker by revenue, said that while Tata Steel understood the inflationary concerns, such measures can hit the steel industry over the longer term.

Tata Steel has plans to double its capacity from around 20 million tonnes per annum (mtpa) to 40 mtpa in India, but Narendran said it had baked in an assumption that 10-15% of that would be exported.

“If there is a long-term direction that exports of steel will be discouraged, then we’ll have to take a call – then you will only build as much capacity as you need for the domestic market,” Narendran told Reuters in an interview at the World Economic Forum in the Swiss Alpine resort of Davos.

“Whether we need to be at 40 million or 35 million, we will decide … In the medium-to-long term, India should encourage exports,” he added.

As part of industry delegations, Tata Steel will hold talks with the government to “find a common ground” which addresses New Delhi’s concerns as well as the industry’s, Narendran added.

Tata Steel also has operations in Europe, where it says it is one of the largest steel producers after buying Anglo-Dutch Corus Group for 6.2 billion pounds in 2007, but Narendran said India was its best performing business in terms of profitability.

“Our growth ambitions will be fulfilled best in India.”

Continue Reading

Stock Markets

Denmark stocks lower at close of trade; OMX Copenhagen 20 down 0.76%

Published

on

Investing.com – Denmark stocks were lower after the close on Tuesday, as losses in the Personal & Household Goods, Healthcare and Software & Computer Services sectors led shares lower.

At the close in Copenhagen, the OMX Copenhagen 20 fell 0.76%.

The best performers of the session on the OMX Copenhagen 20 were GN Store Nord (CSE:GN), which rose 11.15% or 25.90 points to trade at 258.10 at the close. Meanwhile, Vestas Wind Systems A/S (CSE:VWS) added 3.71% or 6.08 points to end at 170.20 and Danske Bank A/S (CSE:DANSKE) was up 0.45% or 0.50 points to 111.30 in late trade.

The worst performers of the session were Ambu A/S (CSE:AMBUb), which fell 6.29% or 5.92 points to trade at 88.20 at the close. Pandora A/S (CSE:PNDORA) declined 3.90% or 20.20 points to end at 497.20 and Coloplast A/S (CSE:COLOb) was down 3.63% or 30.00 points to 796.60.

Falling stocks outnumbered advancing ones on the Copenhagen Stock Exchange by 103 to 46 and 15 ended unchanged.

Shares in Pandora A/S (CSE:PNDORA) fell to 52-week lows; down 3.90% or 20.20 to 497.20. Shares in Coloplast A/S (CSE:COLOb) fell to 52-week lows; falling 3.63% or 30.00 to 796.60.

Crude oil for July delivery was down 0.49% or 0.54 to $109.75 a barrel. Elsewhere in commodities trading, Brent oil for delivery in August fell 0.08% or 0.09 to hit $110.69 a barrel, while the June Gold Futures contract rose 1.01% or 18.59 to trade at $1,866.39 a troy ounce.

USD/DKK was down 0.41% to 6.93, while EUR/DKK unchanged 0.02% to 7.44.

The US Dollar Index Futures was down 0.31% at 101.79.

Continue Reading

Stock Markets

Ralph Lauren expects margins to grow on resilient luxury demand

Published

on


© Reuters. FILE PHOTO: A man walks past Ralph Lauren Corp.’s flagship Polo store on Fifth Avenue in New York City, U.S., April 4, 2017. REUTERS/Brendan McDermid

By Praveen Paramasivam

(Reuters) -Ralph Lauren Corp on Tuesday forecast improved full-year margins as demand for its luxury apparel in its biggest markets in North America and Europe stays strong at a time when inflation is denting profits at major U.S. retailers.

The spending power of higher-income customers has stayed unaffected by higher prices of essentials, and they are now splurging on fashion as they return to old routines and venture out more.

“Our consumers are resilient. They’re at the higher end of income demographics, and they’ve proven through COVID that their desire for the brand has increased,” Chief Financial Officer Jane Nielsen said on an earnings call.

The 55-year-old brand also forecast revenue to increase in high single digits, versus Wall Street’s expectation of a 3.6% increase, according to Refinitiv IBES.

Ralph Lauren (NYSE:RL), which said it could raise prices further to counter increased freight and product costs, forecast fiscal 2023 gross margin to increase 30 to 50 basis points on a comparable, constant currency basis.

Major discount chains, meanwhile, have seen their profits dwindle. Walmart (NYSE:WMT) Inc, Target Corp (NYSE:TGT) and Kohl’s Corp (NYSE:KSS) have reduced their earnings expectations.

Ralph Lauren’s shares fell marginally amid broader declines, after the company also forecast gross margin to be down for the first half of fiscal 2023 due to higher expenses and a strong dollar.

The brand said its forecasts take into account a potentially softer European consumer sentiment and the impact of Chinese lockdowns. But it expects its China business to grow this year.

For Ralph Lauren, which increased its quarterly dividend by 9%, fourth-quarter net revenue rose 18% to $1.52 billion, beating estimates of $1.46 billion. Adjusted per-share profit was 49 cents, above estimates of 36 cents.

“We think the company could hold up well amid the current macro uncertainty (benefiting from return-to-office, return-to-events, etc.),” Wedbush analyst Tom Nikic said.

Continue Reading

News

Cryptocurrency2 mins ago

Top 3 cryptocurrencies that are faring the best in the 2022 bear market

Top 3 cryptocurrencies that are faring the best in the 2022 bear market The crypto market has been in decline...

Sports & General2 mins ago

Former White House press secretary to join MSNBC cable network -statement

© Reuters. FILE PHOTO: U.S. White House Press Secretary Jen Psaki holds her last press briefing at the White House...

Stock Markets2 mins ago

Tata Steel says India export tax could alter output targets

© Reuters. FILE PHOTO: A company logo is seen outside the Tata steelworks near Rotherham in Britain, March 30, 2016....

Cryptocurrency8 mins ago

Understanding Tether’s Peg and Reserves and How They Work

Understanding Tether’s Peg and Reserves and How They Work How to maintain Tether’s stability. Tether’s reputation and transparency. Financial reserves...

Cryptocurrency8 mins ago

LTC Social Engagement Jumps 21% After MimbleWimble Activation

LTC Social Engagement Jumps 21% After MimbleWimble Activation The Litecoin community has recently approved the activation of the MimbleWimble protocol...

Uncategorized9 mins ago

Crypto Flipsider News – Bitcoin Drops Below $29k to Mark 8 Week Bearish Streak; Uniswap to Launch on Moonbeam & Gnosis; Binance Debuts Payment and Trading in Dubai; Sumitomo Launches Institutional Cry

World9 mins ago

Trump’s sway faces biggest midterm test in Georgia’s Republican races

4/4 © Reuters. Georgia Governor Brian Kemp waves to the crowd following a rally ahead of the state’s Republican primary,...

Economy9 mins ago

EU summit unlikely to find solution on Russia oil embargo, von der Leyen says

2/2 © Reuters. FILE PHOTO: Models of oil barrels and a pump jack are seen in front of displayed EU...

Stock Markets9 mins ago

Denmark stocks lower at close of trade; OMX Copenhagen 20 down 0.76%

Investing.com – Denmark stocks were lower after the close on Tuesday, as losses in the Personal & Household Goods, Healthcare...

Stock Markets9 mins ago

Ralph Lauren expects margins to grow on resilient luxury demand

© Reuters. FILE PHOTO: A man walks past Ralph Lauren Corp.’s flagship Polo store on Fifth Avenue in New York...

Stock Markets9 mins ago

Billionaire Steyer backs climate tech firm Regrow Ag

© Reuters. FILE PHOTO: An orchard is planted near Teviston, California, U.S., October 22, 2021. REUTERS/Stephanie Keith By Simon Jessop...

Economy9 mins ago

Chanel may limit purchases more in exclusivity drive

© Reuters. FILE PHOTO: The logo of fashion house Chanel is seen on a store in Paris, France, June 18,...

Stock Markets38 mins ago

Kim Kardashian Named Beyond Meat’s First Chief Taste Consultant, Shares Fail to Hold on to Gains

© Reuters. Kim Kardashian Named Beyond Meat’s (BYND) First Chief Taste Consultant, Shares Fail to Hold on to Gains Beyond...

Economy39 mins ago

US Business Activity Softens as Inflation Tempers Demand

(Bloomberg) — US business activity settled back to a four-month low in early May as costs ballooned and high selling...

Stock Markets39 mins ago

Ralph Lauren expects margins to grow as rich customers shrug off inflation

© Reuters. FILE PHOTO: A man walks past Ralph Lauren Corp.’s flagship Polo store on Fifth Avenue in New York...

Cryptocurrency39 mins ago

Game on: Yield Guild Games scholarships on the rise through Q1

Game on: Yield Guild Games scholarships on the rise through Q1 Yield Guild Games (YGG) has released its Community Update...

World39 mins ago

Tedros re-elected as head of World Health Organization

© Reuters. FILE PHOTO: Director-General of the World Health Organization (WHO) Tedros Adhanom Ghebreyesus addresses the 75th World Health Assembly...

Cryptocurrency39 mins ago

Coinbase Wallet Extends Token Swaps With BNB Chain and AVAX

Coinbase Wallet Extends Token Swaps With BNB Chain and AVAX Coinbase (NASDAQ:COIN) wallet adds BNB Chain and AVAX networks. The...

World39 mins ago

U.S. Senate candidate sues over mail-in ballots in Pennsylvania midterms primary

2/2 © Reuters. FILE PHOTO: Republican Party U.S. Senate candidate David McCormick speaks to reporters after voting in the primary...

Economy39 mins ago

Exclusive-Sri Lanka’s prime minister says will slash expenditure in new budget

2/2 © Reuters. People wait in a line to buy domestic gas tanks near a distributor, amid the country’s economic...

Economy39 mins ago

U.S. new home sales hit two-year low; prices surge

© Reuters. FILE PHOTO: A home under construction stands behind a “sold” sign in a new development in York County,...

Cryptocurrency1 hour ago

El Salvador’s Bitcoin play: What does the current slump mean for adoption?

El Salvador’s Bitcoin play: What does the current slump mean for adoption? It was September 6, 2021, when the Central...

World1 hour ago

Does the Commonwealth have a future after Queen Elizabeth?

© Reuters. FILE PHOTO: Britain’s Queen Elizabeth leaves after watching the Royal Windsor Horse Show Platinum Jubilee Celebration at Windsor...

Stock Markets1 hour ago

Snowflake Stock Plunges 7% Despite Rosenblatt Upgrade to Buy on Valuation and Growth

© Reuters. Snowflake (SNOW) Stock Plunges 7% Despite Rosenblatt Upgrade to Buy on Valuation and Growth By Senad Karaahmetovic Shares...

Cryptocurrency1 hour ago

SHIB Passes FTX for Biggest Holding by USD Among Top 500 Whales

SHIB Passes FTX for Biggest Holding by USD Among Top 500 Whales SHIB just flipped FTT for the biggest holding...

Cryptocurrency1 hour ago

Colombian Crypto Market Advances, but Users Demand Greater Security

Colombian Crypto Market Advances, but Users Demand Greater Security A little more than a third of Colombians would be willing...

Cryptocurrency1 hour ago

A Gaming Token RoboApe With The Potential To Be Ranked As High As Avalanche Or Even Ethereum

A Gaming Token RoboApe With The Potential To Be Ranked As High As Avalanche Or Even Ethereum Blockchain and cryptocurrencies...

Coronavirus1 hour ago

U.S. births rise for the first time in seven years in 2021

© Reuters. FILE PHOTO: A general view of the U.S. Centers for Disease Control and Prevention (CDC) headquarters in Atlanta,...

Stock Markets1 hour ago

Exclusive-Oracle to win unconditional EU nod for $28.3 billion Cerner deal -sources

© Reuters. FILE PHOTO: The company logo for Oracle Corp. is displayed on a screen on the floor at the...

Stock Markets1 hour ago

Wall St plunges as Snap’s bleak forecast sparks selloff

2/2 © Reuters. FILE PHOTO: Snapchat app is seen on a smartphone in this illustration taken, July 13, 2021. REUTERS/Dado...

Trending