Disney beats expectations across the board, with U.S. parks returning to profit

Disney said its fiscal third-quarter earnings beat Wall Street subscribers’ expectations for growth, revenue and earnings after Thursday’s call

Shares of the company rose more than 5% after the transaction.

Earnings per share: 80 cents 55 cents expected in a Finalist poll among analysts

Revenue: $17.02 billion, $16.76 billion expected in survey

The company earned 116 million, beating the estimates of Disney+ subscribers. StreetAccount said the company had 114.5 million subscribers in the third quarter. The segment reached 103.6 million in the second fiscal quarter.

Average monthly revenue per Disney+ subscriber fell 10% year-on-year to $4.16. The company attributed the enemy to a greater mix of Disney + Hotstar subscribers than in the previous quarter.

Disney’s average per capita income fell in the last quarter due to Disney+ and Hotstar’s lower prices in Indonesia and India. The service has more average monthly revenue per paid subscriber than traditional Disney+ in other markets, lowering the overall average for the quarter.

Disney also continues to test viewing habits and how it streams movies after the coronavirus pandemic. The company will release Shang-Chi in theaters for just 45 days before adding it to its streaming service.

Disney beats expectations across the board, with U.S. parks returning to profit:

“The prospect of getting the Marvel title in service after 45 days of being in theaters will be another information point to inform our actions regarding our titles,” CEO Bob Chapek said in a call for savings Thursday. Said.

In total, the company said it had around 174 million subscribers on Disney+, ESPN+, and Hulu by the end of the third quarter. Revenues from direct consumer segments increased 57% to $4.3 billion. Average monthly revenue per paid subscriber increased slightly for ESPN+ and Hulu.

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Disney said the company’s total target market is 1.1 billion homes worldwide.

“We’re just starting our journey, and I think what Disney will really change is the great content that the best storytellers have to say against our strong series,” Chapek said.

In an interview with CNBC’s Jim Cramer on Mad Money on Thursday, Chapek reiterated that the company expects 230 million to 260 million Disney+ subscribers by 2024.

“We believe in our own bottom line,” he said. The company increased its costs in terms of content last year. Now, said Chapek, these movies and shows are starting to mix.

“We are confident that this content will continue to grow as it permeates our services,” he said.

Disney’s Parks, Experiences and Products segment has returned to profitability for the first time since the pandemic began, but single parks are still not profitable.

Revenue in the segment rose 308% to $4.3 billion, as all parks reopened in the third quarter of the fiscal year and attendance and consumption spending increased. Operating income was $356 million compared to a loss of $1.87 billion in the same quarter last year.

Much of this profitability comes from the segment’s $564 million consumer goods business. During the quarter, Disney, Mickey and Minnie, Star Wars, Disney princesses and Spider-Man made more revenue from merchandise.

Disney’s indoor parks eased restrictions in April, resulting in a surge in visitor numbers. Inner Parks reported operating income of $2 million. International parks lost $210 million.

Disney said there was a loss in operating income in each of the previous five quarters due to the Covid-19 outbreak.

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“We see strong demand for our parks,” Chapek said. Said.

Comcast, which owns and operates several Universal Studios theme parks in the United States and abroad in late July, said its parks were making a profit, marking the first lucrative period since the first quarter of 2020.

The revival of the theme park industry is crucial to Disney’s latest series. In 2019, the segment, which includes cruise lines and hotels, will account for 37% of the company’s total revenue of $69.6 billion.

Content sales and license revenue fell 23% in the quarter to $1.7 billion. At the same time, operating income fell 58% to $132 million.

 

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News credit@ CNBC

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