Disney (NYSE: DIS) reported its first fiscal quarter earnings after the market closed on Thursday and removed any doubts about the importance of its streaming ambitions. The company’s direct consumer services (DTC) reached more than 146 million subscribers. Disney said that the number of members for its main Disney + service has risen to 94.9 million, totaling more than 21 million in the first quarter alone. New members were attracted by successes like The Mandalorian and WandaVision.
Even more surprisingly, Disney reported an astonishing earnings of $ 17 million, or earnings per share of $ 0.02, although it marked a 98% drop from the prior year quarter. Revenue of $ 16.2 billion fell 22% year on year, but rose sequentially from $ 14.7 billion in the third quarter. The company also burned $ 685 million in cash during the quarter.
(Left to right) Paul Bettany is Vision and Elizabeth Olsen is Wanda Maximof in a Marvel Studios’ scene WandaVision. Image source: Disney.
Revenue from the DTC business was part of the heavy lifting, rising to $ 3.5 billion, an increase of 73% year on year. The company’s other streaming networks did their part, with ESPN + subscribers jumping to 12.1 million, an increase of 83% year on year, while total Hulu subscribers rose 30% to 39.4 million.
Broadcast and cable TV (linear networks) maintained the line, exceeding by 2%, to US $ 7.7 billion. Unfortunately, the Disneyland Resort in California remained closed due to the pandemic, with partial closures from Disneyland Paris and Hong Kong Disneyland. This weighed on Disney’s parks, experiences and product segment, as revenue fell 53% to $ 3.6 billion.
Disney CEO Bob Chapek opted to see the glass as half full. “We believe that the strategic actions we are taking to transform our company will fuel our growth and increase shareholder value, as demonstrated by the incredible advances we have made in our DTC business, reaching more than 146 million paid subscriptions to our streaming services at the end of the quarter, “he said.