Jeff Gritchen | MediaNews Group | Orange County Register via Getty Images
Disney reported strong growth in subscribers to paid streaming offers in its fiscal 2021 first quarter earnings report after the bell on Thursday.
The stock rose by around 3% after hours.
Here are the key numbers:
- Earnings per share: According to Refinitiv, 32 cents was adjusted against an expected loss of 41 cents
- Revenue: According to Refinitiv, it is expected to be $ 16.25 billion versus $ 15.9 billion
Disney announced that it had nearly 95 million paid subscribers to its Disney + streaming service as of the quarter ended Jan. 2. It does so in the first quarter after Disney’s free trial ends for some subscribers.
However, the average monthly revenue per paid Disney + subscriber declined 28% from $ 5.56 to $ 4.03 compared to the prior year quarter. That’s because that number now includes subscribers to Disney + Hotstar, which launched in India and Indonesia last year. The service has lower average monthly revenue per paid subscriber than traditional Disney + in other markets, lowering the overall average for the quarter.
On Disney’s earnings call, CFO Christine McCarthy said that without Hotstar, the average revenue per paid Disney + subscriber for the quarter would have been $ 5.37.
McCarthy also said that Disney won’t be reporting streaming subscriber numbers on a regular basis in future quarters since it’s now more than a year after Disney + launched. But she said they could reveal some milestones.
Average monthly revenue per paid subscriber increased slightly for ESPN + and Hulu, with the latter growing 26% for those using the live TV service.
The company said it had more than 146 million paid subscribers to its streaming services as of the end of the first quarter. Disney’s other direct-to-consumer platforms include ESPN + and Hulu.
Revenue for Disney’s direct customer business increased 73% year over year to $ 3.5 billion. This growth helped offset losses in other segments, which had an impact on the impact of the pandemic.
Revenue in Disney’s Parks, Experiences and Products segment declined 53% to $ 3.58 billion as many of its theme parks either closed or operated at reduced capacity and the cruise lines and guided tours ceased.
The company said the Covid-19 outbreak cost that division approximately $ 2.6 billion in lost operating income in the first quarter of fiscal.
Content and licensing revenue declined 56% to $ 1.7 billion for the quarter as Disney had no new theatrical releases and limited home entertainment releases in October, November and December.
Last year in particular, the studio released “Frozen II” in theaters and brought “Toy Story 4”, “The Lion King” and “Aladdin” to the home video market.
This story evolves. Check for updates again.
Disclosure: NBCUniversal is the parent company of Universal Studios and CNBC.
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