Abraham Yousef · August 2023
MMM: Disney's 3Q revenue fell short
Disney's 3Q FY23 earnings per share (EPS) met expectations, but revenue fell short. However, Disney+ core subscribers increased, while total Disney+ SVOD subscribers declined due to weakness in Hotstar. Zillow's residential revenue declined 3% YoY, but outperformed competitors. Zillow also saw an increase in mobile app downloads and ad spend. ST data shows a decline in desktop engagement for major US airlines from April to July 2023.
Key Takeaways:
Disney’s reported 3Q FY23 EPS met street estimates while revenue missed the mark. Despite missing on revenue, reported Disney+ core subscribers increased 1% QoQ, +13% YoY, inline with ST MAUs for Disney+ (+1% QoQ, +3% YoY) and Disney+ including Star+ (+3% QoQ, +10% YoY)
Reported total Disney+ SVOD subs fell single-digits both QoQ and YoY primarily due to weakness in Disney’s Indian streaming arm, Hotstar, after the loss of IPL streaming rights this year. Per ST data, Hotstar 2Q23 MAUs decreased -15% QoQ (-18% YoY) inline with reported declines in Disney+ Hotstar subs -24% QoQ (-31% YoY)
Zillow’s 3% YoY decline in 2Q23 reported residential revenue outperformed competitors in the industry. ST mobile app downloads for Zillow actually increased 10% YoY in 1H23 where Redfin and Realtor.com have fallen by 7% YoY
Zillow is also the only brand to increase its 1H23 ad spend, up 13% YoY, resulting in a ~70% YoY increase in impressions
With ST’s proprietary device panel, digital activity can be broken down into two major buckets: desktop and mobile. Across the three largest US domestic air carriers (United, American, and Delta), ST data indicates that from Apr’23 to Jul’23, there's been a material decline in the share of desktop engagement. The share of consumer engagement on desktop across United, American, and Delta was down 9pps, 8pps, and 7pps, respectively, in Jul’23 vs Apr’23
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