Walt Disney reported better-than-expected first-quarter revenue on Wednesday, buoyed by a steady recovery in its domestic theme parks during the holiday season and strong streaming subscriber growth.
Chief executive Bob Chapek reaffirmed the Disney+ subscriber target of 230 million to 260 million by 2024. The company added 11.8 million Disney+ subscribers in the first quarter.
The company’s overall revenue rose 34 per cent to $21.82 billion (€19.1 billion) in the quarter to January 1st, topping analysts’ estimate of $20.91 billion, according to Refinitiv data.
Disney+, the company’s two-year-old streaming service kept the business afloat when the pandemic disrupted its legacy theme parks, resorts and cruise operations.
Now, the relaxing of government restrictions and pent-up demand has led to strong attendance at domestic theme parks as Omicron fears have receded.
Shares of the entertainment company were up 8 per cent in extended trading.
Excluding items, Disney+ earned $1.06 per share, blowing past Wall Street's estimate of 63 US cents.
First century
"This marks the final year of the Walt Disney Company's first century, and performance like this coupled with our unmatched collection of assets and platforms, creative capabilities, and unique place in the culture give me great confidence we will continue to define entertainment for the next 100 years," Mr Chapek said.
Revenue in the parks, experiences and products segment more than doubled to $7.23 billion in the first quarter. Operating profit in the segment stood at $2.45 billion, versus an operating loss of $119 million a year ago.
Disney+ subscribers stood at 129.8 million at the end of the first quarter, compared with Factset estimates of 129.2 million.
Investors are watching the streaming service’s growth trajectory as it relates to its ability to reach fiscal 2024 guidance.
Disney has poured billions into creating new programming to grab a share of the online video market dominated by Netflix, staking its future on a direct-to-consumer strategy.
During the first quarter, Disney+ released the first episode of The Book of Boba Fett, about the Star Wars bounty hunter; The Beatles: Get Back documentary series from filmmaker Peter Jackson, and Hawkeye, about the Marvel superhero.
In January, Netflix forecast weak first-quarter subscriber growth, which sent shares down nearly 20 per cent and erased most of its remaining pandemic-fueled gains from 2020. – Reuters
