Disney+ adds 11.8m subscribers in first quarter

During the first quarter, Disney+ released the first episode of 'The Book of Boba Fett' (pictured), about the Star Wars bounty hunter; 'The Beatles: Get Back' documentary series from filmmaker Peter Jackson, and 'Hawkeye', about the Marvel superhero.

Walt Disney's Disney+ subscriber growth restored faith in the future of streaming video and came on top of strong demand at US theme parks, lifting shares 8% after hours last night.

Speaking on CNBC, Disney chief executive Bob Chapek reaffirmed the Disney+ subscriber target of 230m to 260m by 2024. The company added 11.8m Disney+ subscribers in the first quarter.

The company's overall revenue rose 34% to $21.82bnn in the quarter ended January 1, topping analysts' estimate of $20.91bn, according to Refinitiv data.

Disney+, the company's two-year-old streaming service, kept the business afloat when the pandemic disrupted its legacy theme parks, resorts, and cruise operations.

Now, the relaxing of government restrictions and pent-up demand has led to strong attendance at domestic theme parks as Omicron fears have receded.

Excluding items, Disney earned $1.06 per share, blowing past Wall Street's estimate of 63c.

This marks the final year of the Walt Disney Company’s first century, and performance like this, coupled with our unmatched collection of assets and platforms, creative capabilities, and unique place in the culture, give me great confidence we will continue to define entertainment for the next 100 years,” said Mr Chapek.

Revenue in the parks, experiences, and products segment more than doubled to $7.23bn in the first quarter.

Meanwhile, operating income in the segment stood at $2.45bn, versus an operating loss of $119m a year ago.

Disney+ subscribers stood at 129.8m at the end of the first quarter, compared with Factset estimates of 129.2m.

Disney has poured billions into creating new programming to grab a share of the online video market dominated by Netflix, staking its future on a direct-to-consumer strategy.

Its much anticipated Obi-Wan Kenobi series will premier on Disney+ on May 25, Mr Chapek said.

During the first quarter, Disney+ released the first episode of The Book of Boba Fett, about the Star Wars bounty hunter; The Beatles: Get Back documentary series from filmmaker Peter Jackson, and Hawkeye, about the Marvel superhero.

In January, Netflix forecast weak first-quarter subscriber growth, which sent shares down nearly 20% and erased most of its remaining pandemic-fuelled gains from 2020. 

Reuters