New Disney CEO Josh D’Amaro Gives Vision for Company in Shareholder Letter

The new chief executive at Disney DIS 0.56%increase; green up pointing triangle on Wednesday laid out his long-term vision for the company, centered on using technology to reach consumers and increase profits.

In a nearly 3,000-word letter to shareholders accompanying quarterly financial results and comments in a conference call with analysts, Josh D’Amaro emphasized his plans to make Disney+ a digital hub for all the company’s businesses and invest in new technology, particularly around videogames.

Chief Financial Officer Hugh Johnston also answered a burning question among Disney investors by saying the company doesn’t intend to sell or spin off its linear networks, including ESPN.

The shareholder letter, a new tack for Disney, provides fresh insights on how D’Amaro hopes to boost the company’s stagnant stock price. Disney faces a costly transition from linear TV to streaming; economic and political instability; and heightened competition from tech companies such as YouTube.

For the second fiscal quarter, ended March 28, Disney reported revenue of $25.17 billion, up 7% from a year earlier. Net income fell around 30% to $2.25 billion, largely owing to a one-time tax benefit the prior year. Earnings per share excluding certain items rose 8% to $1.57, above analysts’ expectations, thanks in large part to growing streaming margins.