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Disney shares have jumped more than 5% in after-hours trading Thursday after the entertainment giant surpassed Wall Street expectations, posting a quarterly profit of $923 million, or 50 cents per share, compared to a loss of $4.7 billion, or $2.61 per share, a year ago.
Adjusted for one time items, the House of Mouse earned 80 cents per share, compared to 8 cents a year ago, topping Wall Street's estimate of 55 cents. The company's overall revenue for the third quarter came in at $17.02 billion, compared to $11.78 billion a year ago, beating Wall Street's forecast of $16.76 billion.
For the nine-month period ending July 3, Disney posted net income of $1.86 billion, or $1.02 per share, with total revenue of $48.9 billion.
|DIS||THE WALT DISNEY CO.||179.29||+1.20||+0.67%|
SCARLETT JOHANSSON LAWSUIT STIRS DEBATE OVER STREAMING-ERA MOVIE COMPENSATION
The company's Media, Entertainment and Distribution segment reported third quarter revenue of $12.68 billion, compared to $10.7 billion a year ago. Direct-to-consumer revenue grew 57% to $4.3 billion as total streaming subscribers grew to nearly 174 million, with 116 million Disney+ subscribers, 14.9 million ESPN+ subscribers and 42.8 million total Hulu subscribers.
Average revenue per paid subscriber fell 10% for Disney+ to $4.16, which was attributed to a higher mix of higher mix of Hotstar subscribers, while ESPN+ and Hulu both grew slightly. Disney estimates a total addressable streaming market of 1.1 million households across the globe.
Disney's content slate through the end of 2021 includes Beatles documentary series "Get Back" and television shows such as Marvel's "Hawkeye," starring Jeremy Renner and Hailee Steinfeld, "Star Wars: The Mandalorian" spin-off "The Book of Boba Fett," and National Geographic's "Welcome to Earth" with Will Smith. It will also release films including "Free Guy," starring Ryan Reynolds, on Friday, Marvel's "Shang-Chi and the Legend of the Ten Rings," starring Simu Liu, on Sept. 3, Walt Disney Animation Studios' "En Canto" on Nov. 24, Steven Spielberg's live-action musical version of "West Side Story" on Dec. 10, and prequel "The King's Man" on Dec. 22.
In 2022, Disney will release Marvel's "Eternals," "Dr. Strange and the Multiverse of Madness," "Thor: Love and Thunder" and "Black Panther 2: Wakanda Forever" as well as a new installment in the Indiana Jones franchise and "Lightyear," a spin-off of the Toy Story franchise.
"We’ve only just begun our journey and as I think you see what’s really going to make the difference for Disney is our spectacular content, told by the best storytellers, against our powerhouse franchises," Chapek told analysts on the company's third quarter earnings call.
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While Disney has experimented with both streaming-only and hybrid release models on films like the live-action "Mulan," Pixar's "Soul," Walt Disney Animation's "Raya and the Last Dragon," "Cruella," Marvel's "Black Widow" and "Jungle Cruise," "Shang-Chi" will have an exclusive 45-day theatrical release before premiering on Disney+.
"The prospect of being able to take a Marvel title to the service after going theatrical with 45 days will be yet another data point to inform our actions going forward on our titles," Chapek said.