Disney Q3 Takeaways: Big Earnings Beat, Hulu And Disney+ Subscriber Numbers Rise, ARPU Falls

Walt Disney Co DIS reported fiscal third-quarter earnings after market close Thursday. Here are the key takeaways for investors to know.

What Happened: Disney reported third-quarter revenue of $17.02 billion, up 45% year-over-year. The total beat the consensus estimate of $16.8 billion. Disney reported adjusted earnings per share of 80 cents versus a street estimate of 56 cents per share.

The company’s Media, Entertainment and Distribution segment had revenue of $12.68 billion, up 18% year-over-year.

Disney’s Parks, Experiences and Products segment had revenue of $4.34 billion, up over 100% year-over-year.

Related Link: Walt Disney’s Stock Falls On Revenue Miss, Slower Disney+ Subscriber Growth

Streaming Growth, Lower ARPU: One of the big numbers investors are likely looking at is the 116 million Disney+ subscribers, up from 57.5 million a year ago and up from the 103.6 million reported in the second quarter.

The company reported a lower average revenue per user for Disney+ of $4.16. This total is down 10% from the prior year, but did come in above last quarter’s $3.99 total. A higher mix of international Disney+ customers is lowering the average revenue per user.

Disney reported 42.8 million Hulu subscribers, up 21% year-over-year. The average revenue per user for Hulu’s SVOD rose 15% to $13.15 and increased 23% year-over-year to $84.09 for Live TV + SVOD customers.

The company reported 14.9 million ESPN+ subscribers, up from last year’s 8.5 million total. ESPN+ subscribers had average revenue per user of $4.47, up 7% year-over-year.

DIS Price Action: Disney shares are up 5% to $187.91 in after-hours trading Thursday. Shares closed the regular session up 1% to $179.33.

Market News and Data brought to you by Benzinga APIs
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNewsTop StoriesAfter-Hours CenterMoversTrading IdeasDisney+ESPNESPN+Hulumedia stocksstreaming stocks
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...