Theme Parks Thrive, Balancing Television Ad Decline
Walt Disney exceeded Wall Street’s earnings expectations as higher attendance at its Shanghai and Hong Kong theme parks offset a decline in advertising revenue at television network ABC. The company reported per-share earnings, excluding certain items, of 82 cents in its fiscal fourth quarter ended Sept. 30, topping an average forecast of 70 cents a share. Quarterly revenue of $21.2 billion was largely in line with consensus estimates. The company said it added nearly 7 million Disney+ subscribers in the quarter.
Disney+ and Disney+ Hotstar together boast 150.2 million subscribers. Disney now says it is on track to achieve $7.5 billion in annualized savings, as it aggressively manages costs3. Disney’s newly named Experiences group, which includes its theme parks and resorts, and cruise lines and consumer products, reported nearly $1.8 billion in operating income in the quarter, up 31% from a year ago. Higher attendance at Shanghai Disney, Hong Kong Disneyland and Disneyland resorts, and growth of the cruise businesses, helped offset lower results at Walt Disney World in Florida. Disney’s Entertainment unit, which includes its television networks, its films studio and its Disney+ and Hulu services, posted operating income of $236 million in the quarter, compared with losses of $608 million a year ago.
