9 February Disney reported for the first quarter of fiscal year 2022, which ended 1 January. The result was better than expected: Disney+ subscribers are on the rise, and park revenues tripled. In the postmarket, DIS shares rose by 7%, to 157 $.
Financial results
Here's how the figures changed year-on-year and what analysts expected:
- total revenue — $21.8 billion (+34%), expectations — $20.9 billion;
- adjusted earnings per share — 1,06 $ (+231%), expectations - 0,63 $;
- 129.8 million Disney+ subscribers (+37%), expectations - 125.8 million.
And these are the results in the operating segments of Disney.
"Media and entertainment"
Revenue compared to last year:
- television - $7.7 billion (+0%);
- streaming - $4.7 billion (+34%);
- licenses — $2.4 billion (+43%).
Here, television remains the only profitable direction., where operating profit was $1.5 billion. Operating loss from content licenses — $0.1 billion.
But the operating loss from streaming amounted to almost 0.6 billion dollars. Disney+ still remains unprofitable, although the number of subscribers for the quarter increased by 12 million people. It's so much more, than Netflix, which for the same period added about 8 million users. In its recent report, Netflix noted a slowdown in the growth of paid subscribers. Disney has not changed its long-term goal: 230—260 million by 2024.
The company reported, that content spending in the current quarter will increase five times, up to a billion dollars. And to offset the costs, Disney raises subscription prices. Over the past year, the average monthly revenue per Disney+ user in the US and Canada increased by 15%, in other countries - by 26%. Previously, the prices of their subscriptions were raised by Netflix and Amazon.
"Parks and Souvenirs"
Revenue compared to last year:
- US parks - $4.8 billion (+222%);
- other parks — $0.9 billion (+128%);
- souvenirs - $1.6 billion (−9%).
Total operating income of the parks amounted to $1.6 billion, whereas a year ago the company reported a loss of $1.1 billion. Disney said, that sales have increased, as people began to go to parks more often and stay in branded hotels. According to the company, quarantine restrictions still negatively affect her income, especially outside the US.
And in the second half of 2021, Disney closed some of its retail stores., so here operating profit decreased by 7%, up to $0.9 billion.
