Walt Disney Co on Thursday reported quarterly revenue that was better than Wall Street expected as live sports returned to ESPN, which is 80 percent owned by the company, and its theme parks began recovering from shutdowns due to the COVID-19 pandemic.
Overall revenue fell 23 percent to US$14.71 billion in the quarter, above analysts’ average estimate of about US$14.2 billion.
Disney’s adjusted loss per share, excluding one-time items of 20 cents, also beat Wall Street expectations of a more drastic 70 cents per share loss.Disney shares jumped 5.6 percent to US$143.12 in after-hours trading.
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One year after it launched the Disney+ online streaming subscription to compete with Netflix Inc, Disney said that the service had signed up 73.7 million subscribers.Hulu Inc had 36.6 million customers and ESPN+ had 10.3 million.
However, Disney+ faces a test, as a one-year free trial offer for Verizon Communications Inc customers expired on Thursday.
Disney aims to gain new sign-ups with the release of a Star Wars Lego holiday special this month, Pixar movie Soul at Christmas and Marvel series WandaVision in January.
Disney’s businesses outside of streaming have been hammered by the COVID-19 pandemic.
The outbreak forced the company to close theme parks, suspend cruises and delay movie releases, and it left ESPN without major sports broadcasts. Disney said that the pandemic reduced profit at its parks units by US$2.4 billion.
“Even with the disruption caused by COVID-19, we’ve been able to effectively manage our businesses while also taking bold, deliberate steps to position our company for greater long-term growth,” chief executive Bob Chapek said in a statement.
The parks have started to welcome back visitors and sports leagues have resumed play, although a rise in cases in Europe and the US threatens that progress.
During the quarter that ended in September, most of Disney’s theme parks, including its flagship resort in Florida, had reopened, but with limited attendance, mask requirements and other safeguards.
The parks and consumer products business lost US$1.1 billion in operating income, less than analysts expected.
Disneyland in California has been shut since March, and Disneyland Paris was last month forced to close for a second time as COVID-19 cases spiked in France.
At the media networks segment, the return of major sports helped boost ESPN. The unit reported US$1.9 billion in operating income, up 5 percent from a year earlier.
Profit at the movie studio slumped 61 percent to US$419 million, as the company delayed major movie releases until next year and many theaters remained closed.
Disney last month announced a restructuring designed to focus on streaming as the firms’s future.
The streaming unit, known as direct-to-consumer and international, has been losing money as it invests to build Disney+. For the quarter that ended in September, the division lost US$580 million, less than the US$1 billion that analysts expected.
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