Disney’s quarter three earnings report was released on Thursday. The entertainment company’s shares increased by 5% following the news, reaching $186 per share. Wall Street’s expectations were crushed. Surprise for Disney Investors.
They earned 80 cents vs the expected 55 cents per share. In addition, revenue was 17.02 billion vs $16.76 billion forecasted.
Further to this, Disney’s subscriber counts beat estimates of 114.5 million and reached 116 million subscribers. Also, an improvement in the second quarter which was 103.6 million subscribers.
Their revenue per user has decreased due to the lower Disney+ and Hotstar bundle pricing in India and Indonesia. Due to the lower monthly revenue compared to other Disney+ markets brought the overall average down for the quarter.
Their two main revenue streams, of which one are Parks, Experiences and Products brought in $4.34 billion in revenue. The other stream of income, Media and Entertainment brought in $12.68 million in revenue. Parks, Experiences and Products revenue increased by 100% since last year and Media and Entertainment by 18%.
Disney’s Parks segment improves
The Parks, Experiences, and Products business has not been profitable until this year, posting their first profit since the start of the pandemic. The park’s business alone is not profitable. The main impact was because of the pandemic lockdowns.
However, with restrictions being eased. Consumer spending increased in the third quarter. All Disney’s parks reopened, and revenue spiked massively by 308%, bringing in $4.3 billion. Their operating income also moved to $356 million, which compensated for their loss of $1.87 billion for Q3 last year.
Merchandise from Mickey and Minnie, Star Wars, Disney princesses, and Spider-Man brought in higher revenue in quarter 3. And they reached an operating income of $564 million.
Parks restrictions were on ease. Attendance increased in April, resulting in an operating income of $2 million, while their international parks made a loss of $20 million.
The Covid-19 pandemic lockdown restrictions, and subsequent parks closures, resulted in the park’s businesses posting losses for the previous five quarters.
Disney’s theme park business is critical to its bottom line, accounting for 37% of its revenue in 2019. Major stock updates to be on MetaNews.