Burbank’s Disney returns to profit as streaming success ease theme-parks blows

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Burbank’s Disney returns to profit as streaming success ease theme-parks blows

Later last week, Walt Disney Co., the Burbank, California-based American diversified mass media company, had reported a surprise quarterly profit over the holiday quarter last year, as trending TV shows such as “The Mandalorian” and “Soul” had ramped up its rapidly-surging streaming media revenues, undermining concerns related to the pandemic-bubble led hobbles at its theme park operations.

On top of that, as investors had overlooked a decline of as much as 53 per cent in theme-park revenues and embraced Walt Disney Co.’s recent success on its streaming media platform Disney+ that claimed to have reached about 94.9 million paid subscribers in less than a year, shares’ prices of Walt Disney Co.

wrapped up the week 2.08 per cent higher to $187.67 apiece after hitting an all-time high of $194 per share. Notably, including ESPN+ and Hulu, the Californian multinational mass media conglomerate’s paid streaming media subscriptions topped a whopping 146 million during the last three months of 2021.

Disney+ has been a massive success, say market analysts

According to Disney’s quarterly earnings’ report for fourth-quarter 2020 that ended on December 31, the Burbank-based mass-media giant had reported a net income of 32 cents per share on Q4, 2020, insanely beating Wall Street estimates of a loss of 41 cents per share on an average, IBES data from Refinitiv had revealed.

Besides, as the company’s quarterly revenue topped an analysts’ estimate of $15.93 billion to $16.25 billion, Disney Chief Executive Bob Chapek said in a post-earnings’ conference call with the reporters, “During the pandemic we have made significant changes while finding new and innovative ways to conduct our businesses.

But at the same time, we have chartered a course for an even more deliberate and aggressive (streaming) push. Meanwhile, largely echoing a strident tone from Disney Chief Chapek, an analyst at eMarketer Eric Haggstrom said following the announcement, “Disney+ has been a massive success and is a testament to Disney’s brand equity and expertise in storytelling. This has been one of the most successful consumer product launches in recent memory”.