by Ray Keating
News
DisneyBizJournal.com
May 13, 2021
Disney’s earnings in the second quarter ending April 2, 2021, improved compared to the same quarter last year, beating market expectations, while Disney+ subscriptions continued to grow. But new subscriber numbers fell short of expectations.
Diluted earnings per share (EPS) from continuing operations for the quarter improved from $0.26 in the prior-year quarter to $0.50 this year. With certain items excluded, diluted EPS for the quarter went from $0.60 to $0.79 – an increase of 32 percent. That $0.79 EPS left market expectations far behind.
However, revenues and free cash flow were down by 13 percent and 67 percent, respectively, in the quarter compared to the same quarter last year.
The parks, obviously, were hit hardest, with Disney Parks, Experiences and Products segment suffering a 44 percent decline in revenue, and the company saying, “We estimate an additional $1.2 billion impact on the Disney Parks, Experiences and Products segment operating income compared to the prior-year quarter.”
At the close of the quarter ending on April 2, 2021, Disney+ subscribers reached 103.6 million. That was up by 209 percent compared to 33.5 million for the previous-year quarter ending on March 28, 2020, and increase from 94.9 million on January 2, 2021. Market expectations were running at some 109 million, however.
Also compared to a year earlier, ESPN+ subscriptions were up 75 percent – 13.8 million on April 2, 2021, versus 7.9 million on March 28, 2020 – and Hulu subscribers grew by 30 percent – going from 32.1 million to 41.6 million.
Direct-to-Consumer revenues increased by 59 percent – from $2.5 billion in last year’s second quarter to $4 billion in this year’s second quarter – playing a central role in offsetting losses elsewhere.
Disney CEO Bob Chapek served up some optimism: “We’re pleased to see more encouraging signs of recovery across our businesses, and we remain focused on ramping up our operations while also fueling long-term growth for the Company. This is clearly reflected in the reopening of our theme parks and resorts, increased production at our studios, the continued success of our streaming services, and the expansion of our unrivaled portfolio of multiyear sports rights deals for ESPN and ESPN+.”
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Ray Keating is the editor, publisher and economist for DisneyBizJournal.com, and author of the Pastor Stephen Grant novels and assorted nonfiction books. Have Ray Keating speak your group, business, school, church, or organization. Email him at raykeating@keatingreports.com.
The views expressed here are his own – after all, no one else should be held responsible for this stuff, right?
Keating has two new books out. Vatican Shadows: A Pastor Stephen Grant Novel is the 13ththriller/mystery in the Pastor Stephen Grant series. Get the paperback or Kindle edition at Amazon, or signed books at www.raykeatingonline.com. Past Lives: A Pastor Stephen Grant Short Story is the 14th book in the series. Get the paperback or Kindle edition at Amazon, or signed book at www.raykeatingonline.com. And pre-order the 15th book in the series What’s Lost? A Pastor Stephen Grant Short Story.
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You also can order his book Behind Enemy Lines: Conservative Communiques from Left-Wing New York from Amazon or signed books at RayKeatingOnline.com. His other recent nonfiction book is Free Trade Rocks! 10 Points on International Trade Everyone Should Know.
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