[ad_1]
Walt Disney Co.’s streaming service Disney + proved to be a big plus again during a pandemic that virtually shut down other activities in the Magic Kingdom. And that caused Disney shares to rise 2% on Thursday after hours.
An increase in Disney + subscriptions, to 94.9 million, led to a rebound in revenue from the previous quarter as the media giant continued to double its direct-to-consumer sales.
Dis from disney,
reported surprise first-quarter earnings of $ 17 million, or 2 cents per share, on sales of $ 16.25 billion, compared to $ 15.8 billion in the quarter last year.
After adjusting for restructuring charges and other effects, Disney reported earnings of 32 cents per share, down from $ 1.53 per share in the last year’s quarter. Analysts on average expected Disney to report an adjusted loss of 34 cents per share on sales of $ 15.9 billion, according to FactSet.
“We believe the strategic actions we take to transform our business will fuel our growth and enhance shareholder value, as demonstrated by the incredible progress we’ve made in our DTC business, reaching over 146 million paid subscriptions to the total through our streaming services at the end of the quarter, ”Disney chief executive Bob Chapek said in a statement announcing the results.
“Disney + has exceeded even our highest expectations,” Chapek said on a conference call with analysts later, noting that it stood at 26.5 million subscribers in the same quarter a year ago. year. He also noted spikes in usage for ESPN + (up 83% to 12.1 million) and Hulu (up 30% to 35.4 million).
Disney’s media and entertainment distribution, which includes Disney +, grossed $ 12.66 billion for the quarter, a 5% drop from the same quarter a year ago before the pandemic swept across everyone the country. The Disney Parks, Experiences and Products unit took in $ 3.6 billion, down 53% year-over-year, with many Disney parks remaining closed.
Disney + ‘s sustained strength has impressed Wall Street analysts despite stiffening competition from Apple Inc.’s AAPL,
Apple TV +, Netflix Inc. NFLX,
T from AT&T Inc.,
HBO Max, CMCSA of Comcast Corp.,
Peacock, AMZN from Amazon.com Inc.,
Prime Video and others.
“Disney + has been a huge success and a testament to the value of the Disney brand and its storytelling expertise,” said Eric Haggstrom, forecast analyst for eMarketer. “This is one of the most successful consumer product launches in recent memory. Going forward, Disney will continue to grow its streaming business, while its parks, TV and movie businesses will benefit and recover quickly thanks to increased vaccination and pent-up massive demand.
Because Disney is investing heavily in its streaming business – it plans to invest between $ 14 billion and $ 16 billion in all of its services in 2024 – it is not expected to be profitable until at least 2023. Disney + is expected to generate more revenue in March , when the monthly rate increases from $ 1 to $ 7.99 in the United States and from € 2 to € 8.99 per month in Europe.
The growth of subscribers at Disney +, ESPN +, Hulu and Hotstar instead remains the center of attention – and for good reason. On its Investor Day on December 10, Disney management said these services could reach some 350 million subscribers by 2024.
Disney stock has improved by more than 35% in the past year, including 24% since its investor day in December. The Dow Jones Industrial Average DJIA,
– which counts Disney as a component – has grown 7% in the past year.
[ad_2]
Source link