Disney Reports Solid Earnings

 by Ray Keating

News

DisneyBizJournal.com

August 12, 2021

 

Disney’s price jumped in after-market trading today due to an earnings report that beat expectations. The company’s revenues jumped in the third quarter compared to a year earlier, and Disney+ subscriber growth came in ahead of forecasts.

For the third quarter ending on July 3, 2021, Disney+ subscribers registered 116 million. That compared to 103.6 million as of April 2, 2021, and 57.5 million a year earlier. So, growth over the past year came in at 101.7 percent.

 

Also on the streaming front, ESPN+ subscriptions registered 14.9 million as of July 3, 2021, versus 13.8 million as of April 2, 2021, and 8.5 million last year. That’s growth of 75.3 percent over the past year.

 

And Hulu subscriptions came in at 42.8 million at the end of the third quarter, compared to 41.6 million as of April 2, 2021, and 35.5 million a year earlier. That registered as a growth rate of 20.6 percent over the past year.

 

As for earnings, diluted earnings per share (EPS) from continuing operations for the quarter came in at $0.50 versus a loss of $2.61 last year. With certain items excluded, diluted EPS for the quarter went from $0.08 last year to $0.80 in this year’s third quarter. That $0.80 EPS beat market expectations.

 

Revenues for the quarter ending July 3, 2021, were $17.02 billion, which also beat expectations and were up by 45 percent compared to last year’s $11.8 billion in the same quarter. Income came in at $995 million versus a loss of $4.8 billion last year.

 

With the reopening of parks and resorts, the improvements in the performance of the Disney Parks, Experiences and Products segment was dramatic. During this latest quarter, revenues for the division came in at $4.3 billion, which was a 307.6 percent increase over last year’s $1.1 billion. As for the segment’s operating income, $356 million compared to a loss of $1.9 billion last year.

 

Disney CEO Bob Chapek said, “We ended the third quarter in a strong position, and are pleased with the company’s trajectory as we grow our businesses amidst the ongoing challenges of the pandemic. We continue to introduce exciting new experiences at our parks and resorts worldwide, along with new guest-centric services, and our direct-to-consumer business is performing very well, with a total of nearly 174 million subscriptions across Disney+, ESPN+ and Hulu at the end of the quarter, and a host of new content coming to the platforms.” 

 

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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 three 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. Again, get the paperback or Kindle edition at Amazon, or signed book at www.raykeatingonline.com. And order the 15th book in the series What’s Lost? A Pastor Stephen Grant Short Story – grab it at Amazon.com or signed editions at www.raykeatingonline.com. 

 

Also, check out Ray’s podcasts – the Daily Dose of Disney, Free Enterprise in Three Minutes, and the PRESS CLUB C Podcast.

 

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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