Disney Beats Predictions on Earnings, But Not Revenue

Walt Disney Co. beat Wall Street expectations on earnings but missed on revenue during the fiscal second quarter.The Burbank entertainment and media giant reported on Thursday net income of $901 million (49 cents a share) for the quarter ending April 3, compared with net income of $460 million (25 cents) in the same period a year earlier. Revenue decreased by 13 percent to $15.6. billion.Adjusted earnings were 79 cents for the quarter compared to 60 cents for the second quarter of the prior year.Analysts on average expected earnings of 27 cents on revenue of $15.9 billion, according to Thomson Financial Network.Chief Executive Bob Chapek said he was pleased to see encouraging signs of recovery across Disney’s businesses, and that the company was focused on ramping up operations while fueling long-term growth.“This is clearly reflected in the reopening of our theme parks and resorts, increased production at our studios, the continued success of our streaming services and the expansion of our unrivaled portfolio of multiyear sports rights deals for ESPN and ESPN+,” Chapek said in a statement.On April 30, Disney reopened to limited visitors its flagship Disneyland and Disney California Adventure theme parks in Anaheim. Both had been closed for more than a year due to the coronavirus pandemic.The domestic and international theme parks that were open during the quarter brought in revenue of just less than $2 billion. Domestic revenue dropped by 58 percent to $1.7 billion from the second quarter of the prior year.“Walt Disney World Resort (in Orlando) and Shanghai Disney Resort were both open in the current quarter,” the company said in a release. “Our parks and resorts that were open during the quarter operated at significantly reduced capacities.”At the Disney media and entertainment distribution business unit, revenue increased by 1 percent to $12.4 billion.

Results at Disney+ were similar to the prior-year quarter as an increase in subscribers was largely offset by higher programming and production, marketing and technology costs, the company said.Disney+ had 104 million subscribers as of April 3. That compared to 34 million at the end of the second quarter of last year.“The increases in subscribers and costs reflected the ongoing expansion of Disney+ including launches in additional markets,” the company added in its release.Shares of Disney (DIS) closed Thursday up 49 cents, or a fraction of a percent, to $178.34 on the New York Stock Exchange on a day when the Dow Jones closed up 1.3 percent.