Disney’s Exposure To Russia, Ukraine “Not Significant” At 2% Of Operating Income, CFO Says

deadline.com:

Walt Disney CFO Christine McCarthy said the entertainment giant’s total exposure to Russia and Ukraine combined is about 2% of its total operating income — with Ukraine about 10% of that 2%.During a Q&A at Morgan Stanley’s technology, media and telecom conference, she called the situation there “very unfortunate.” Disney was the first Hollywood studio to announce (on Feb.

28) that it was pulling its theatrical releases from Russia temporarily in response to the country’s invasion of Ukraine. Others followed.“Theatrical release of films in Russia is not the only thing that we have.

Many parts of our business have different relationships and business ventures in Russia,” she said. “We have had some licensing and theatrical distribution.

But that [2%] is what the overall exposure of our company is… So it is not a significant number for us.”McCarthy also defended ticket pricing at Disney theme parks and discussed the company’s decision, announced last Friday, to offer a less expensive version of Disney+ with ads.“Some people have more time than they do money, and some have more money than they do time,” she said, with new tiers of ticket pricing and services catering to both.With the business of streaming coming under fire for high costs and red ink, she stood by the company’s guidance for DTC subscriptions and profitability. “We feel good about 230 to 260 Disney+  subscribers by 2024.