Disney+ subscriptions near 130 million, beating expectations
The world’s largest entertainment company books record revenue at its domestic parks and resorts as Disney+ subscriptions near 130 million.
Walt Disney reported better-than-expected subscription numbers for its Disney+ streaming service in the recently completed quarter, reversing a slowdown in sign-ups.
Disney+ reported 129.8 million subscribers at the end of the holiday quarter, up from 118.1 million subscribers in the prior quarter. Analysts polled by FactSet expected 124.7 million subscribers to the platform.
The world’s largest entertainment company posted $US21.82bn ($A30.39bn) in revenue for the quarter, compared with $US16.25bn a year earlier. Analysts were expecting the company to report revenue of $US20.27bn.
Sales at its theme parks and consumer products division – which includes Walt Disney World and Disneyland resorts – were $US7.23bn, buoyed by increasing strength in outdoor travel. Analysts expected $US6.36bn. The company said its domestic parks and resorts reported record revenue and operating income.
Wednesday’s results were Disney’s first earnings report since longtime executive Robert Iger left the company as executive chairman at the end of December. Disney named Susan Arnold as his successor.
Shares of Disney rose 8.6 per cent in after-hours trading. The stock closed Wednesday at $US147.23, up 3.3 per cent.
Disney’s biggest streaming rival, Netflix, last month said it added 8.3 million subscribers, fewer than investors had expected, and ratcheted down its estimates for growth. Netflix shares fell 20 per cent in after-hours trading the day it reported weaker-than-expected subscriber growth.
Disney chief executive Bob Chapek said in November that the company is still on track to reach around 260 million streaming customers by the end of fiscal 2024.
Investors have punished Disney because of slowing subscriber growth. The company’s share price has fallen about 30 per cent from highs of nearly $US202 reached in March 2021. Shares are down about 8 per cent since the beginning of the year.
Last quarter, Mr Chapek said he expected that a stream of new shows and films out in the second half of 2022 would help reboot demand for Disney+. Those include the spy thriller series “Andor,” the superhero miniseries “Ms Marvel” and a live action reboot of “Pinocchio.”
The Wall Street Journal
Trump’s ultimate goal unclear as tariffs launch trade wars
The President’s trade assault, which makes no distinction between ally and adversary, is an assertion of US dominance with significant risks.
RBA’s days of self-doubt need to end
For a number of years, the Reserve Bank has been operating under a cloud of self-doubt that it should work to throw off.