Disney Media Releases Q4 2021 Financial Results. Disney + Streaming Service Subscribers Grow Less, what 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 in total. Here are the results for each.
"Media and entertainment"
Compared to the previous, Third Quarter, Disney + Subscribers Increased 2M, from 116 to 118 million. Analysts expected, that 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 to the production of content, so the service has nothing to attract new customers.
Among other things, Disney + Growth Impacted by Easing Quarantine Restrictions. People are spending more time outside the home., for example travel. Airbnb Releases 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 long-term goal of 230 million to 260 million Disney + subscribers by 2024. According to the company, expansion into foreign markets and new content will help achieve this goal.
Disney's total 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 to $ 630 million.
License revenue increased by 9%, up to $ 2 billion: the company has released more films, than a year ago. for example, this quarter came out "Black Widow", "The protagonist" and "Shang-Chi". Due to expenses on advertising and promotion of future films, the operating loss of this direction amounted to 65 million dollars.. A year ago, profit was 86 million.
Revenue in the segment "Media and entertainment", million dollars
"Parks and consumer goods"
Disney Parks Increase Traffic Due To Eased Restrictions And Increased Vaccinations. All parks were open during the quarter. Compared to last year, revenue here has doubled, up to 5.5 billion dollars. Operating profit in the segment amounted to 640 million dollars - against a loss of 945 million a year earlier.
And 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 effect on the attendance of parks.
Revenue in the segment "Parks and consumer goods", million dollars
|Parks and entertainment||4166 (+196%)|
|Goods and souvenirs||1284 (−3%)|