Shares of Walt Disney Co. (DIS) are up 8% today after the company reported earnings for its fiscal first quarter that beat analyst estimates across the board.
Disney’s earnings per share came in at $1.06 U.S. versus $0.63 cents U.S. that was expected, according to Refinitiv data. Revenue at the Mouse House totaled $21.82 billion U.S. compared to $20.91 billion U.S. that Wall Street had expected.
Also, Disney+ total subscriptions reached 129.8 million in the quarter, which was higher than the 125.75 million that was expected.
Disney+ subscriptions beat estimates, even as executives said they didn’t expect subscriber growth for Disney+ to be significant until the second half of this year with the majority of original content being released on the platform in the fourth quarter of 2022.
The subscriber number includes nearly 12 million Disney+ subscriptions added in the fiscal first quarter. The service also saw average revenue per user (ARPU) in the U.S. and Canada grow to $6.68 U.S. per month from $5.80 U.S. a year ago.
Disney said it expects to spend significantly on streaming in the second quarter. The company expects programing and production expenses for the direct to consumer business to increase by about $800 million U.S. to $1 billion U.S., including programing fees for Hulu live.
Disney reiterated guidance of 230 million to 260 million Disney+ subscribers by 2024.
Disney’s parks, experiences and consumer products division saw revenues reach $7.2 billion U.S. during the latest quarter, double the $3.6 billion U.S. it generated in the previous year. The segment saw operating results jump to $2.5 billion U.S. compared to a loss of $100 million U.S. a year ago.
Disney said the growth in revenue came as more guests attended its theme parks, stayed in its branded hotels and booked cruises. During the most recent quarter, Disney’s parks operated with fewer COVID-19 capacity restrictions.