DisneyAn impressive financial report for the third fiscal quarter was released after the market on Thursday. Subscriber growth, revenue, and profits all exceeded Wall Street's expectations.
Financial reports show that Disney's revenue for the third fiscal quarter increased 44.5% year-on-year to 17.02 billion US dollars, and the market expected 16.76 billion US dollars; adjusted earnings per share were 0.8 US dollars, and the market forecast was 0.55 US dollars.
Disney said the company's streaming service Disney+ reached 116 million subscribers in the third fiscal quarter, double the 57.5 million in the same period last year. Market expectations were 114.5 million, compared to 103.6 million in the previous fiscal quarter. The average monthly revenue per Disney+ subscriber fell 10% year over year to $4.16.
Analysts remain optimistic that Disney will reach its target of 230 million to 260 million subscribers by 2024.
Disney said that by the end of the third fiscal quarter, Disney+, ESPN+, and Hulu had close to 174 million subscribers. Revenue from its direct-to-consumer segment increased 57% to $4.3 billion. Content sales and licensing revenue for the quarter fell 23% to $1.7 billion.
Also, it's worth noting that Disney's theme park, experience, and product division has recovered profits for the first time since the COVID-19 pandemic began, although the theme park division alone has not been profitable.
Financial reports show that the revenue of the Disneyland, Experience, and Product division increased 307.6% to 4.3 billion US dollars in the third fiscal quarter, and operating profit reached 356 million US dollars, compared to a loss of 1.87 billion US dollars in the same period last year; US domestic topicsElysiumThe operating profit of resorts and experiences was 2 million US dollars, while the international side still lost 210 million US dollars.
Disney's parks in the US relaxed restrictions in April, which increased the number of visitors. The revival of the theme park sector is critical to Disney. In 2019, this division, which includes cruises and hotels, accounted for 37% of the company's total revenue of US$69.6 billion.
After the earnings report was announced, Disney's stock price surged more than 5% after the market. The company's stock price closed 0.67% higher at $179.29 on Thursday.