Earlier in the pandemic, Disney had shut down or reduced capacity at its theme parks. It also suspended cruises. The domestic parks are now open, with revenue increasing by $7.23 billion to that division, and profit rising to $2.45 Billion from a loss of $119 M in the previous year. This was despite the fact that COVID-19 restrictions, which suppressed some peoples' travel plans, continued to impact some international operations.
Disney, Burbank, California reported Wednesday net income of $1.15 Billion in the three months to Jan. 1. This compares with $17 M in the fiscal 1st quarter last year.
Earnings per share were 60 cents or $1.06 if you exclude certain items. Revenue climbed 34%, to $21.82 million. FactSet polled analysts and predicted earnings of 74c per share for revenue of $20.27 trillion. Aftermarket trading saw Disney shares rise 8% to $159.08
Paul Verna, an Insider Intelligence analyst, stated that the results "speak volumes for Disney's storied brand and its ability to rise above competition in an increasingly crowded market for digital media," in an email.
As traditional TV networks are losing viewers, Disney's streaming business has been its number one priority. Investors closely watched the growth of Disney+ since its launch in November 2019, when it quickly gained large subscriber numbers. Recent growth had slowed and analysts warned that Disney+ might miss its target of 230m to 260m subscribers by 2024.
However, the subscriber growth was greater than expected, even though rival Netflix suffered growth. Disney+ subscribers reached 129.8m, an increase of 37% over the previous year, 11.8m more than the prior quarter, and higher than analysts' predictions of 125.4 million. Disney supported its 2024 forecast.
It boasts 196.4 million total streaming subscribers, including Disney+, ESPN+, and Hulu.
Although streaming is the company’s main focus, Disney’s networks business still generates a lot of money. FX, ABC, and ESPN made $1.5 billion profit in the last quarter. This was 13% less than the previous year due to higher production and marketing costs.
Segment that includes movie business suffered a loss $98 million compared to $188 million profit a year ago, and revenue rose 43% to $2.4billion. As the movie business continues to recover, so did results in theatrical distribution.
The company is monitoring consumer behavior to determine the best way to release films. However, Disney CEO Bob Chapek stated Wednesday that theatrical distribution is not the only way to build a brand.
The animated "Encanto", which was released in theaters on December Eve, was available on Disney+ for 30 days. This was a shorter time than the traditional 90-day window that existed before the pandemic. It was the most successful animated movie at the box-office during the pandemic. The film grossed more than $237 million worldwide. However, Chapek stated that "Encantobecame a Disney+ phenomenon. "We Don’t Talk About Bruno", the film’s most beloved song, is now a worldwide phenomenon on social media and has been the highest-charting Disney animated film song in 26 years.
