Disney beats estimates and boasts 28.6m new subscribers for streaming service
Walt Disney beat analysts’ estimates for its quarterly revenue and boasted 26.5m for its Disney Plus streaming service in the quarter.
In a conference call after the earnings release, chief executive Bob Iger said Disney Plus is now at at 28.6m paid subscribers as free trials turned into paid subscriptions. He said the service has “exceeded even our greatest expectations.”
It is Disney’s first results since it announced it had 10m sign-ups for its streaming service a day after its launch last November.
The company reported $20.65bn in revenue compared to the $20.79bn anticipated by Refinitiv.
Dave Lawrence, planning director of creative agency Brave, said: “It’s expertly broadening its appeal beyond what it has been historically known for through its innovative acquisitions of timeless classics like Star Wars and the blockbuster Marvel universe, stealing a march on competitors like Netflix.”
He added that Disney’s subscription cost of $6.99 per month, which undercuts Netflix, “will only further draw in interest from the masses.”
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The direct-to-consumer and international segment, which houses Disney Plus, reported quarterly revenue of $3.99bn. However it was the only money-losing segment reporting an operating loss of $693m, compared with an operating loss of $136m a year earlier. Analysts had expected an operating loss of $802m on revenue of $3.85bn.
Earnings per share rose to $1.53, beating estimates of $1.44.
Operating income from its parks and consumer products business rose 8.6 per cent to $2.34bn, despite concerns it would be hit by the impact of the coronavirus in its Asian markets.
The movie studio segment reported an operating income of $948m, up from $309m a year earlier.