Disney reported strong set of numbers as Park Business revenue doubles!
Revenue beat estimates - The company reported a revenue of $21.82 billion for Q1, which is higher than the street estimate of $20.8 billion. The revenue from the entertainment giant's parks, experience, and products business hit $7.23 billion, more than double from the year before.
Earning Per Share - The Earning Per Share was $1.06 as against analysts' expectation of 63 cents.
Subscription numbers - The company reported it has 129.8 million subscribers on its platform, well above the analysts’ estimates of 125.75 million. The subscriber number included nearly 12 million Disney+ subscriptions in the first quarter. The average revenue per user (ARPU) in the US and Canada grew to $6.68 per month from $5.80 a year ago. The company reiterated its target to bring on 230 million and 260 million subscribers in total to the service by the end of fiscal 2024.
Park business growing - Disney’s parks, experiences, and consumer products division reported revenue of $7.2 billion during the quarter. It doubled from the $3.6 billion it generated in the prior-year quarter. The segment saw operating results jump to $2.5 billion compared to a loss of $100 million in the same period last year. The revenue increased on the back of more guests attending its theme parks, staying in its branded hotels, and booking cruises.
Increase in price - The company raised prices for its Disney+ streaming services one year ago to $8 a month, while Hulu, majority-owned by Disney, increased the price of its live TV subscription services in December by $5 a month to $70 a month. The fee includes Disney+ and ESPN+, which alone costs $7 a month.
Target share price - The 25 analysts offering 12-month price forecasts for Walt Disney Co have a median target of $196, with a high estimate of $220 and a low estimate of $126.
Disney Quarterly Results Review:
Disney reported a strong set of numbers for the first quarter beating analyst estimates. The subscriber number increased while revenue from the theme park was more than total. It has estimated higher subscriber numbers in the coming years. Disney’s domestic parks operated with fewer Covid-19 capacity restrictions. However, international locations continue to be impacted by mandatory capacity and travel restrictions.
The current price of Disney's share is $147.23.