Disney publishes financial results for the fourth quarter of 2021. Disney+ streaming service subscribers up less, than analysts expected. Total revenue was also lower than expected: 18,5 against $ 18.8 billion. After the report, Disney shares fell by 5%, to 166 $.
Disney has two operating segments. Here are the results for each.
"Media and entertainment"
Compared to the previous, Disney+ subscribers up 2 million in third quarter, from 116 to 118 million. Analysts were expecting, about 9 million new users will subscribe to the service. For comparison: in the third quarter the number of subscribers grew by 12 million.
Disney warned of slower growth back in September. The company said, that due to the spread of the coronavirus there were disruptions in the production of content, so the service has nothing to attract new customers.
Among other things, Disney+ growth was affected by the easing of quarantine restrictions. People are spending more time outside the home., for example travel. Airbnb posted a strong third quarter report last week.: revenue increased by 36 And 67% for 2019 and 2020. The company expects, that in the near future the demand for short-term rental housing will continue to recover.
Disney reaffirms its long-term goal of reaching 230-260 million Disney+ subscribers by 2024. According to the company, expansion into foreign markets and new content will help achieve this goal.
Disney subscribers including ESPN+ and Hulu reached 179 million at the end of the quarter. Streaming revenue increased by 38%, up to $4.6 billion. Operating loss increased from $374 million to $630 million.
License revenue increased by 9%, up to 2 billion dollars: the company has released more films, than a year ago. For example, Black Widow came out this block, "Protagonist" and "Shang-Chi". Due to the cost of advertising and promotion of future films, the operating loss of this direction was 65 million dollars. A year ago, profit was 86 million.
Revenue in the Media and Entertainment segment, million dollars
| A television | 6698 (−4%) |
| Streaming | 4560 (+38%) |
| Licenses | 2047 (+9%) |
6698 (−4%)
"Parks and Consumer Goods"
Disney Parks Increase Traffic Due To Eased Restrictions And Increased Vaccinations. During the quarter, all parks were open. Compared to last year, revenue here has doubled, up to $5.5 billion. Operating profit in the segment amounted to 640 million dollars - against a loss of 945 million a year earlier.
See also 8 November, the USA opened the borders for vaccinated travelers from other countries. For the first time since March last year. The company considers, that it will also have a positive impact on park attendance.
Revenue in the Parks and Consumer Goods segment, million dollars
| Parks and entertainment | 4166 (+196%) |
| Goods and souvenirs | 1284 (−3%) |
4166 (+196%)
