Disney Beats Expectations With Revenue of $17 Billion

Walt Disney Co. beat Wall Street estimates on earnings and revenue for the third quarter, while subscribers to its Disney+ streaming service topped more than 116 million.The Burbank entertainment and media giant reported on Thursday an adjusted net income of $1.7 billion (80 cents a share) for the quarter ending July 3, compared with adjusted net income of $508 million (8 cents) in the same period a year earlier. Revenue increased 45 percent to $17 billion.Analysts on average expected earnings of 56 cents on revenue of $16.8 billion, according to Thomson Financial Network.Chief Executive Bob Chapek said the company ended the third quarter in a strong position as it grows its business amid the ongoing coronavirus pandemic.“We continue to introduce exciting new experiences at our parks and resorts worldwide, along with new guest-centric services, and our direct-to-consumer business is performing very well, with a total of nearly 174 million subscriptions across Disney+, ESPN+ and Hulu at the end of the quarter, and a host of new content coming to the platforms,” Chapek said in a statement.Out of the total subscriptions to the three streaming services, Disney+ accounted for much of them with a total of 116 million. Direct to consumer revenue increased in the third quarter by 57 percent to $4.3 billion from the $2.7 billion in the same period of the prior year.Total media and entertainment distribution revenue was $12.7 billion, an increase of 18 percent from the revenue of $10.7 billion in the third quarter of last year. Parks, experiences and products revenue went up substantially as the theme parks in California reopened during the quarter, bringing in $4.3 billion as opposed to the revenue of $1.1 billion in the same period of the previous year.“Although results have improved in the current quarter compared to the prior-year quarter from reopening our parks and resorts, we continue to be impacted by the suspension of cruise ship sailings (with an ongoing return of cruise ship sailings beginning in July) and reduced operating capacities across many of our Disney parks, experiences and products businesses,” the company said in a release.Results were released after market close Thursday. Shares of Disney (DIS) closed at $179.29 on the New York Stock Exchange.