Media giant The Walt Disney Company DIS reported third-quarter financial results after the market close Wednesday. Here’s a look at how the company’s parks segment and direct-to-consumer segment performed.
What Happened: Disney reported third-quarter revenue of $21.5 billion, up 26% year-over-year. The total came in ahead of a Street estimate of $20.5 billion, according to data from Benzinga Pro.
Disney reported adjusted earnings per share of $1.09 in the third quarter, beating a Street estimate of $1 per share.
The company saw revenue of $14.1 billion for its media and entertainment segment, up 11% year-over-year.
The Parks, Experiences and Products segment revenue hit $7.4 billion, up 70% year-over-year.
Operating income in the third quarter was $3.57 billion, up 50% year-over-year. The media division had $1.38 billion in operating income, down 32% year-over-year. Operating income for the Parks segment totaled $2.19 billion, up significantly from $356 million year-over-year.
“We had an excellent quarter, with our world-class creative and business teams powering outstanding performance at our domestic theme parks, big increases in live-sports viewership and significant subscriber growth at our streaming services,” Disney CEO Bob Chapek said.
Related Link: How To Trade Walt Disney Stock Before And After Q3 Earnings Print
Why It’s Important: Disney added 14.4 million subscribers for Disney+ in the third quarter for a total of 152.1 million, up from the 137.7 million reported in the second quarter. Here is a look at how Disney+ ended the quarter.
- Disney+ Domestic subscribers: 44.5 million, +17%
- International subscribers, excluding Disney+ Hotstar: 49.2 million, +48%
- Disney+ Hotstar: 58.4 million, +30%
- Total Disney+: 152.1 million, +31%
The company reported average revenue per user of $4.35 for Disney+, up 5% year-over-year. Domestic average revenue per user declined 5% to $6.27 in the third quarter.
ESPN+ ended the third quarter with 22.8 million subscribers, up 53% year-over-year.
Hulu ended the third quarter with 46.2 million subscribers both free and paid, up 8% year-over-year.
The company had 221 million subscribers across all streaming offerings.
Disney saw higher guest volume and increased guest spending for its parks segment in the third quarter. Cruise ships were operating during the third quarter compared to last year’s third quarter with suspended sailings.
The company’s international parks saw growth at several resorts but lower figures from the Shanghai Disney Resort due to park closures in the quarter.
“We continue to transform entertainment as we near our second century, with compelling new storytelling across our many platforms and unique immersive physical experiences that exceed guest expectations,” Chapek said.
DIS Price Action: Disney shares are up 5.92% to $119.09 in after-hours trading Wednesday.
"Cars On The Road" screenshot courtesy of Disney.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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