Disney (NYSE: DIS) reported better-than-expected fiscal third quarter earnings Thursday, surpassing Wall Street expectations regarding revenue, earnings and subscriber growth. Shares were up over 2% following the news.
The multinational mass media and entertainment conglomerate reported earnings of USD0.80 per share, compared to the expected USD0.55 a share. Revenue amounted to USD17.02 Billion, higher than analysts anticipated USD16.76 Billion.
Amid the ongoing pandemic, investors placed a lot of importance on the company’s Disney+ streaming platform. Throughout lockdown and the closure of the famous parks, Disney+ was a safe haven as it rapidly grew.
Disney topped subscriber estimates for Disney+ with a total of 116 million, though Street Account had estimated the company would rack up 114.5 million subscribers. The results greatly eased investor tension as Disney+ had previously reported its worst quarter in May.
“We ended the third quarter in a strong position, and are pleased with the company’s trajectory as we grow our businesses amidst the ongoing challenges of the pandemic,” Disney CEO Bob Chapek said in a press statement. “We continue to introduce exciting new experiences at our parks and resorts worldwide, along with new guest-centric services, and our direct-to-consumer business is performing very well, with a total of nearly 174 million subscriptions across Disney+, ESPN+ and Hulu at the end of the quarter, and a host of new content coming to the platforms.”
Revenue for the company’s direct-to-consumer division shot up 57% to USD4.3 billion. Additionally, average monthly revenue per paid subscriber increased for ESPN+ as well as Hulu. According to Disney, its total addressable market is 1.1 billion households worldwide.
“We’ve only just begun our journey and as I think you see what’s really going to make the difference for Disney is our spectacular content, told by the best storytellers, against our powerhouse franchises,” Chapek said.