Walt Disney Co has sold its streaming history well, but investors will soon have to start paying attention to the other parts of the realm
The entertainment giant’s first quarter results reported Thursday afternoon were essentially a replay of its last update, customers continue to flock to the company’s streaming offerings, but much less to the theme parks and other parts of the company that depend on crowds for revenue $ 16 25 billion surpassed the Wall Street consensus of $ 15 billion, while operating income of $ 29 million was nearly double the consensus forecast – although it was also down 99% from the same period last year

Disney’s share price rose another 2% after hours after the results Investors focused solely on the company’s successful streaming business Disney hit 949 million paid subscribers by the end of the quarter – more than 89, according to Visible Alpha predictions analysts expect 7 million

Disney managed to pick up 8.1 million subscribers in the final month of the quarter, based on an update the company released in December 10 analyst meetings that alone is noteworthy given the competition that Disney is facing from its growing number of streaming competitors The month included the launch of “Wonder Woman 1984” on HBO Max – the first of a list by Warner Bros. Films That Will Make Their On-Service Debut This Year But Disney is now extremely confident in its own streaming prospects; it used 10 meetings that December to set goals to grow as big as Netflix Inc To be resurrecting an already excited investor base by 2024, Disney’s share price has risen 23% since that meeting, compared with the S&P 500’s 7% increase over the same period

But streaming can’t float the entire empire forever Disney’s theme parks business has benefited in part from a broken government response to the coronavirus pandemic Florida allowed the company’s Orlando resort to open at reduced capacity in July, while California said no, which means that theme park revenue increased 33% from the September quarter but declined 68% from the same period last year parks made in usually also make up about a quarter of the company’s operating income Domestic and international parks combined lost just over $ 1 billion in the December quarter

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World News – USA – Disney costs a thrilling ride

Source: https://www.wsj.com/articles/disney-is-priced-for-a-thrill-ride-11613086203