Disney+ subscriber growth and strong demand for theme parks across the United States helped lift Walt Disney’s fourth-quarter 2021 results.
The company’s shares rose about 6.8%, around 12:00 pm (Brasília time), this Thursday (10), following the disclosure of the numbers the day before.
Disney Chief Executive Bob Chapek said he still believes the streaming service, home to hits like “The Mandalorian” and “Black Widow,” will have 230 million to 260 million subscribers by 2024.
The company added 11.8 million subscribers to Disney+ in the last quarter.
Disney+ subscribers reached 129.8 million, compared to Factset’s estimates of 129.2 million.
Disney’s total revenue rose 34% in the fourth quarter of 2021 from a year earlier to $21.82 billion, beating the market’s estimate of $20.91 billion, according to data compiled by Refinitiv.
Disney+, the company’s as-yet-unprofitable streaming service, kept revenue flowing as the pandemic disrupted operations at Disney’s theme parks, resorts and cruises, with subscriber growth of 37% last year.
Investors are tracking the growth trajectory of Disney’s streaming service, especially its ability to hit the 2024 target.
Disney has invested billions in creating new programming to capture a share of the online streaming market dominated by Netflix, betting its future on a direct-to-consumer strategy.
Excluding items, Disney earned $1.06 a share for the quarter, beating Wall Street’s estimate of $0.63.
Revenue in the Parks, Experiences and Products segment more than doubled in one year to $7.23 billion in the last quarter.
Meanwhile, operating profit in the segment was $2.45 billion for the quarter, up from a loss of $119 million a year earlier.
Source: CNN Brasil
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