New streaming subscribers help Disney beat earnings expectations

Walt Disney Co’s revenue has beaten expectations in the third quarter, thanks to new streaming subscribers and the reopening of its theme parks.

Overall revenue was up 45% to $17.02bn (£12.3bn) between April and July – higher than analysts’ estimate of $16.76bn (£12.14bn).

Net income was $918m (£664m) in the three months, compared with a loss of $4.72bn (£3.4bn) in last year’s fiscal third quarter.

The company’s streaming platform thrived during the pandemic and has emerged as a strong competitor in a rapidly-growing and crowded market.

Its three subscription offerings – Disney+, Hulu, and ESPN+ – gained almost 15 million new subscribers, making a total of nearly 174 million.

Disney+ launched in the UK in March last year, about four months after it launched in the US and Canada, where it had more than 10 million subscribers sign up on its first day

The company said it expects up to 260 million subscribers by 2024.

And as the US eases many of its coronavirus restrictions, revenue for Disney’s theme parks was up for the first time in five quarters, reaching $4.34bn (£3.14bn).

Disney World in Florida has been open since July last year but California’s Disneyland only reopened at the end of April.

Many of the parks are operating at reduced capacity and Disney said in July that visitors must once again wear face masks inside as the US grapples with a resurgence of the virus.

Shares in the Walt Disney Co rose 5.1% in after-hours trading on Thursday.

Read Entire Article