Disney Reports Record Revenue and Strong Subscriber Growth

February 10, 2022 09:44

Today, at 13:30 GMT, the market will be watching closely as the US releases its latest inflation rate figures, with CPI expected to rise to 7.3%.

Whilst it is widely anticipated that the Federal Reserve will raise rates in March, the question remains of how much they will raise them by. Most expect a rate hike of 25 basis points, but if CPI is higher than expected, there will be many questioning whether the Fed's hand will be forced into lifting rates by 50 basis points.

In the meantime, we continue with earnings season and last night was the turn of Disney, who released better than expected results for their first fiscal quarter.

Total revenue increased 34% year-on-year (YOY) to $21.82 billion, exceeding the forecasted $20.27 billion, whilst Earnings per Share (EPS) rose more than 230% YOY to $1.06, significantly surpassing the anticipated $0.73.

Thanks to a relaxation in social restrictions and a recovery in travel, Disney reported record revenue and operating income at its domestic theme parks and resorts, with total revenue across its Parks, Experiences and Products sector more than doubling.

Whilst positive results from a company of Disney’s calibre is to be expected, what was surprising was the strong growth in subscriptions for Disney+.

With less social restrictions in place and Netflix recently forecasting a slowdown in their own subscriber growth, many have questioned what the future holds for streaming services. However, Disney’s positive results should help return investor confidence to this sector.

Not only did the number of paid Disney+ subscribers increase by 11.8 million (37% YOY), smashing analysts’ expectations of around 7 million, but the company also forecasted stronger subscription growth in the second half of its year.

In response to these positive results, Disney share price is up almost 8% in pre-market trading this morning.

Depicted: Admirals MetaTrader 5The Walt Disney Co. Daily Chart. Date Range: 10 June 2021 – 9 February 2022. Date Captured: 10 February 2022. Past performance is not a reliable indicator of future results.

Depicted: Admirals MetaTrader 5 – The Walt Disney Co. Weekly Chart. Date Range: 9 August 2015 – 9 February 2022. Date Captured: 10 February 2022. Past performance is not a reliable indicator of future results.


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Roberto Rivero
Roberto Rivero Financial Writer, Admirals, London

Roberto spent 11 years designing trading and decision-making systems for traders and fund managers and a further 13 years at S&P, working with professional investors. He has a BSc in Economics and an MBA and has been an active investor since the mid-1990s