Disney (DIS) Q1 2021 earnings

Disney reported sturdy development in paid streaming subscribers and its first quarterly revenue since early final yr in its earnings report for its fiscal first quarter of 2021 after the bell Thursday.

The inventory was up round 1.7% after hours.

Listed below are the important thing numbers:

  • Earnings per share: 32 cents adjusted vs. lack of 41 cents anticipated, in line with Refinitiv
  • Income: $16.25 billion vs. $15.9 billion anticipated, in line with Refinitiv

This is how the remainder of the report went for Disney.


Disney mentioned it now has virtually 95 million paid subscribers to its Disney+ streaming service as of the quarter ended Jan. 2. This comes in the course of the first quarter after Disney’s free-trial interval ended for some subscribers who’re additionally Verizon clients.

Disney CFO Christine McCarthy informed analysts on the corporate’s earnings name that executives are “actually pleased with the conversion numbers that we have seen there going from the promotion to turn into paid subscribers.”

Common month-to-month income per paid Disney+ subscriber, nonetheless, dipped 28% in contrast with the identical quarter final yr, from $5.56 to $4.03. That is as a result of this quantity now consists of subscribers to Disney+ Hotstar, which launched in India and Indonesia final yr. The service has decrease common month-to-month income per paid subscriber than conventional Disney+ in different markets, flattening the general common for the quarter.

On Disney’s earnings name, McCarthy mentioned that excluding Hotstar, common income per paid Disney+ subscriber would have been $5.37 within the quarter.

Common month-to-month income per paid subscriber grew barely for Disney’s different direct-to-consumer platforms, ESPN+ and Hulu, with the latter seeing 26% development for these utilizing its stay TV service.

The corporate mentioned it now has greater than 146 million complete paid subscribers throughout its streaming companies as of the top of the primary quarter.

Income for Disney’s direct-to-consumer enterprise grew 73% in contrast with the identical quarter the earlier yr, to $3.5 billion. That development helped to offset losses in different segments affected by the pandemic.


Income at Disney’s parks, experiences and merchandise phase fell 53% to $3.58 billion, as a lot of its theme parks have been both closed or working at decreased capability and its cruise ships and guided excursions have been suspended.

CEO Bob Chapek informed analysts on the corporate earnings name that outlook for parks income and reopening is “actually going to be decided by the speed of vaccination of the general public.” Disneyland is internet hosting a vaccination web site for Californians, and Chapek mentioned the location has to this point delivered greater than 100,000 doses.

Chapek mentioned he expects any reopening or enhance in customer capability will embody masking and social distance measures by means of the top of the yr. However he mentioned Dr. Anthony Fauci’s prediction earlier Thursday that the vaccine would start to be accessible to anybody who needs one in April could be a “recreation changer.”

The corporate mentioned the Covid-19 outbreak value this division round $2.6 billion in misplaced working earnings in the course of the fiscal first quarter.

Content material gross sales and licensing revenues decreased 56% to $1.7 billion in the course of the quarter, as Disney had no new theatrical releases throughout October, November and December and restricted residence leisure releases.

Notably, final yr, the studio launched “Frozen II” in theaters and had “Toy Story 4,” “The Lion King” and “Aladdin” hit the house video market.

Disney expects capital expenditures for fiscal yr 2021 to be much like these for 2020, with the enterprise investing extra within the media and leisure phase and fewer within the parks phase.

Disclosure: NBCUniversal is the father or mother firm of Common Studios and CNBC.

Correction: An earlier model of this story misstated remarks from Christine McCarthy, the corporate’s chief monetary officer, concerning Disney’s plans to reveal future subscriber numbers for Disney+. The corporate does in reality plan to supply subscriber quantity updates as of the top of every quarter going ahead. It won’t present further updates on subscriber numbers as of the dates of earnings calls.

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