waltdisneybased in Burbank, California, reported that its quarterly profit rose to $1.06 per share, well above the $0.57 average of analyst estimates.
In a report collected by Investing, it was known that sales in the period ended January 1 increased to 21.8 billion dollars, also exceeding expectations. The shares soared 3.4% on the news, closing Thursday at $152.16.
Disney shares lost 14.4% over the past year as growth in its fastest-growing business segment, Disney+, slowed. The downward trend intensified in November, after the company announced subscriber numbers that fell short of Wall Street forecasts.
“However, this time it was not like that. The Disney+ unit, the company’s flagship, added 11.8 million new subscribers to streaming, reaching 129.8 million at the end of the holiday quarter. According to FactSet, the analyst consensus was less than 7 million additional subscribers.
Additionally, subscription figures showed strong growth from the 118.1 million registered subscribers in the previous quarter.
Disney: theme parks
Another encouraging sign came from the company’s parks division, which posted $2.45 billion in operating income, down from losses a year earlier. Revenue from the resorts unit also doubled from the lows recorded during the pandemic, showing strong consumer demand.
These figures indicate that the worst pandemic-related damage to Disney’s massive entertainment empire may be over.
“We maintain that Disney should see park margins exceed pre-pandemic levels in FY23 as Disney continues to enhance the park-goer experience with new attractions and enhanced operations,” said JPMorgan, which has an overweight rating and a $200 price target on the stock.
“Disney is achieving this success despite operating below capacity and without the benefit of international tourism, thanks to more than 40% growth in per capita spending relative to 2019,” Morgan said. Stanley.
Disney: the gold of Star Wars and Marvel
In an earnings call published by the Wall Street Journal, CEO Bob Chapek told investors that the recent turnaround in subscription growth is due to Disney’s focus on creating new content for its most popular franchises. like Star Wars and Marvel.
Chapek also highlighted the decision to bundle Disney+ subscriptions with its Hulu and ESPN+ services, showing a more general interest in TV series and live sports. Furthermore, he added that the company remains on track to reach between 230 million and 260 million Disney+ subscribers by the end of fiscal year 2024.
The data
- Disney, with little more than two years, surpasses Netflix. While Netflix managed to add 8.3 million subscribers, the platform that hosts The Mandalorian, WandaVision and The Simpsons, gained 11.8 million new users during the last half of 2021.
Source: Larepublica
Kingston is an accomplished author and journalist, known for his in-depth and engaging writing on sports. He currently works as a writer at 247 News Agency, where he has established himself as a respected voice in the sports industry.
