Disney's Theme Parks Revive and Plus Soars... Stock Price Rises 8%

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] U.S. Disney smiled upon exceeding expectations with Disney+ subscription growth and theme park revenue recovery.

On the 9th (local time), according to the Wall Street Journal (WSJ) and others, Disney announced its U.S. fiscal first quarter (October-December 2021) results, reporting revenue of $21.82 billion, a 34.3% increase compared to the same period last year. This surpassed the $20.91 billion forecast by market research firm Refinitiv. Earnings per share also greatly exceeded expectations at $1.06 compared to the predicted 63 cents.

Notably, the total number of Disney+ subscribers stood out. Disney revealed that as of the end of last year, the total Disney+ subscriber count reached 129.8 million. This is a 10% increase from 118.1 million in the previous quarter and significantly exceeded the market expectation of 125.75 million. In the U.S. and Canada, the average revenue per user (ARPU) also rose by more than 15% year-over-year to $6.68 per month.

Bob Chapek, Disney’s Chief Executive Officer (CEO), had previously set a goal to secure 260 million subscribers by the end of fiscal year 2024.

Christine McCarthy, Disney’s Chief Financial Officer (CFO), stated that in the second quarter of this year, Disney plans to invest substantial costs in Disney+, the over-the-top (OTT) online video service, including live programming expenses. She added that ongoing cost spending would not continue indefinitely and said, "We expect to make significant progress by fiscal year 2023."

Disney’s earnings announcement also included $7.2 billion in related revenue from theme parks such as Disneyland and consumer products. This is double the $3.6 billion revenue recorded in the same period last year. Operating profit reached $2.5 billion, achieving a turnaround to profitability. Disney explained that more customers visited theme parks and hotel and cruise bookings increased.

Following the better-than-expected results, Disney’s stock price rose about 8% in after-hours trading. On the day of the earnings announcement, Disney’s stock closed at $147.23, up 3.33% from the previous trading day.

This content was produced with the assistance of AI translation services.