Disney revenue rose 26% in second quarter while the number of subscribers increased to 221 mln

Autor: Financial Market
2 min

Disney (DIS.US) stock jumped after the entertainment giant posted better than expected quarterly results partially thanks to higher spending at its domestic theme parks and most importantly rising number of Disney+ subscriptions.

Disney+ total subscriptions rose to 152.1 million, well above market projections of 147.76 million, according to StreetAccount.

Revenue rose 26% to $21.5 billion and topped Wall Street expectations of $20.96 billion, while the earnings increased by over 36.0% YoY to $1.09 per share, beating Refinitiv analysts’ estimates of 96 cents.

Overall number of subscribers increased to 221 million and Disney overtook Netflix as the world’s biggest platform.

Disney Parks, Experiences and Products revenues for the quarter increased to $7.4 billion compared to $4.3 billion in the prior-year quarter. Segment operating income increased $1.8 billion to $2.2 billion compared to $0.4 billion in the prior-year quarter.

Higher operating results for the quarter reflected increases at domestic parks and experiences and, to a lesser extent, at international parks and resorts.

Improved results at international parks and resorts were primarily due to growth at Disneyland Paris, partially offset by a decrease at Shanghai Disney Resort.

We had an excellent quarter, with our world-class creative and business teams powering outstanding performance at our domestic theme parks, big increases in live-sports viewership, and significant subscriber growth at our streaming services,” said CEO Bob Chapek.

With 14.4 million Disney+ subscribers added in the fiscal third quarter, we now have 221 million total subscriptions across our streaming offerings.

International Channels revenues for the quarter increased 7% to $1.5 billion and operating income was comparable to the prior-year quarter at $0.2 billion reflecting lower operating income from channels that operated for the entire current and prior-year quarters (ongoing channels), offset by a benefit from channel closures.

Direct-to-Consumer revenues increased 19% to $5.1 billion and operating loss increased $0.8 billion to $1.1 billion. The increase in operating loss was due to a higher loss at Disney+, lower operating income at Hulu and, to a lesser extent, a higher loss at ESPN+.

The average monthly revenue per paid subscriber for international Disney+ (excluding Disney+ Hotstar) increased from $5.52 to $6.31 due to increases in retail pricing, partially offset by an unfavorable foreign exchange impact and a higher mix of wholesale subscribers.

Cash provided by operations for fiscal 2022 increased by $0.5 billion from $2.9 billion in the prioryear period to $3.5 billion in the current period. The increase was due to higher operating income and lower pension plan contributions, partially offset by higher spending for film and television content.