At a glance:
- From January to March, Disney+ is expecting 5.3 million new customers.
- Launched in November 2019, Disney+’s total subscriptions reached 137.7 million with the releases including Marvel’s “Moon Knight” series and Pixar movie “Turning Red.”
- Operating income at the parks unit totaled $3.7 billion, a 50% increase from a year earlier.
On 11 May, Walt Disney gained new 7.9 million Disney+ customers, though, the rising wages and disrupted supply chain could pressure finances of the company. From January to March, Disney+ is expecting 5.3 million new customers. After Netflix’s losses, Disney growth has been encouraging for the investors. On a call with analysts, Executives said, “The entertainment giant is working to offset inflationary pressures and challenges in the global supply chain.”
Chief Financial Officer, Christine McCarthy said, “Right now, it’s very difficult to accurately forecast the potential financial impact due to the fluidity of the situation but you can trust that we are fully aware of it and we’re working hard to mitigate any pressure on the margin.”
Positive Streaming Numbers
Following the call, the company’s shares were down 3% in after-hours trading, which initially jumped after the earnings report. The company will need about 9.1 million new customers to reach its goal of adding 230 million to 260 million Disney+ subscribers by the end of September 2024.
Launched in November 2019, Disney+’s total subscriptions reached 137.7 million with the releases including Marvel’s “Moon Knight” series and Pixar movie “Turning Red.” Shahid Khan, partner at Arthur D. Little, a technology and management consulting firm said, “In spite of less-than-optimal results overall, because of the positive streaming numbers, Disney will do well.” “As households rationalize their streaming choices, given the inflation, Disney+ will become one of the top choices and will become a real threat to Netflix.”
According to IBES data from Refinitiv, Disney reported adjusted earnings per share of $1.08, below analyst forecasts of $1.19. The impact by an increase in the effective tax rate on foreign earnings. The company said Operating income at the parks unit totaled $3.7 billion, a 50% increase from a year earlier. However, closures of theme parks in Asia due to COVID-19 could reduce operating income by up to $350 million in the fiscal third quarter,
