The Walt Disney Company’s (DIS) quarterly earnings release revived faith in the entertainment giant’s streaming services, along with recovery at its theme parks boosting shares. The company reported addition of 11.8 million Disney+ subscribers in the first quarter, and forecast higher subscriber growth in the second half of its year.
Disney’s revenue increased 34% to $21.82 billion in the quarter ended Jan. 1, exceeding analysts’ estimate of $20.91 billion. The company’s two-year-old streaming service, Disney+, which is not yet profitable, kept revenue flowing when the pandemic disrupted its legacy theme parks, cruise operations, and resorts. Its subscribers have grown 37% in the past year.
Disney earned $1.06 per share, way above Wall Street’s estimate of 63 cents. Revenue in the parks, experiences, and products segment more than doubled to $7.23 billion in the first quarter. Operating income in the segment stood at $2.45 billion, versus an operating loss of $119 million a year ago. Disney+ subscribers stood at 129.8 million at the end of the first quarter, compared with estimates of 129.2 million. Disney announced in November that it would offer a bundle of its three streaming services, Disney+, Hulu, and ESPN+, for $13.99 per month.
Dow 30 Component, The Walt Disney Company (DIS), and its subsidiaries is a diversified worldwide entertainment company that operates in four business segments: Studio Entertainment, Media Networks, Parks and Resorts, and Consumer Products & Interactive Media. To learn more about this Dow 30 Component, The Walt Disney Company (DIS), and to continue to track its progress please visit the Vista Partners Walt Disney Company, Coverage Page.
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