Shares of Disney rose after the closing bell Wednesday after the company reported stronger-than-expected growth in streaming subscribers across all of its media platforms.
Disney beat Wall Street expectations in streaming, adding 7.9 million Disney+ subscribers vs. 4.5 million expected (137.7 million vs. 135 million expected).
“Our strong results in the second quarter, including fantastic performance at our domestic parks and continued growth of our streaming services—with 7.9 million Disney+ subscribers added in the quarter and total subscriptions across all our DTC offerings exceeding 205 million—once again proved that we are in a league of our own,” Disney CEO Bob Chapek said in a press release.
“As we look ahead to Disney’s second century, I am confident we will continue to transform entertainment by combining extraordinary storytelling with innovative technology to create an even larger, more connected, and magical Disney universe for families and fans around the world,” the executive continued.
Streaming wasn’t the only positive growth story for Disney this quarter. Disney parks, experiences and products segment saw revenues more than double to $6.7 billion during the quarter. The division had an operating profit of $1.76 billion for the quarter, surpassing expectations of $1.6 billion.
The company said growth was fueled by increased attendance, hotel bookings and cruise ship sailings as well as higher ticket prices and higher spend on food, beverage and merchandise.
Bob Chapek said on the earnings call that the parks segment, up 110%, is firing on “all cylinders.”
- Earnings per share: $1.08 adj.
- Revenue: $19.25 billion, which includes a $1 billion reduction resulting from the early termination of some licensing agreements
- Disney+ total subscriptions: 137.7 million vs. 135 million expected