- Disney’s revenue last quarter was $16.25 billion, down 22% year-on-year.
- Disney said that on its streaming service, Disney+, paid users increased to more than 94.9 million.
- The negative effect on the overall Disneyland Resort budget was most noticeable during the month of June and July.
Disney’s performance in the last quarter was unexpectedly profitable. In the first quarter of this fiscal year, it recorded a profit of $17 million, a year-on-year decrease of 99%. After deducting special items, the profit per share was 32 cents, which was better than the market’s expected loss of 41 cents.
Disney’s revenue last quarter was $16.25 billion, down 22% year-on-year. Media and entertainment business revenue decreased by approximately 5% to $12.66 billion, affected by the new coronavirus pandemic.
California, Hong Kong and Disneyland Paris were still closed, and theme park business revenue fell by 53%, to $3.588 billion.
Disney said that on its streaming service, Disney+, paid users increased to more than 94.9 million. It is expected that by 2024, the number of users will reach 230 million to 260 million.
During an earnings call Thursday, CEO Bob Chapek said:
“Where we have been able to reopen our theme parks with limited capacity, guests have consistently demonstrated a willingness and a desire to visit which, we believe, is a testament to the fact that they feel confident in the health and safety protocols we’ve put in place.”
Disney World in Florida has always benefited from slow business cycles. That is one of the reasons why the Walt Disney World Resort was built at an angle that gave it the ability to grow even slower without having to revamp its product line.
They are one of the most successful theme parks in the world. They have been doing this since Walt Disney first opened his doors at WDW (Walt Disney World) in Florida.
“In terms of the outlook for the parks for the rest of the year, and the capacity, it’s really going to be determined by the rate of vaccination of the public,” Chapek said. “That to us seems like the biggest lever that we can maneuver in order to either take the parks that are currently under limited capacity and increase it or open up parks that are currently closed.”
In today’s market it is difficult for any theme park to survive unless it is bringing in a lot of revenue. It has become almost impossible for a smaller regional park, like Disney, to survive when its attendance is down. The good news is that over the past few months there have been a number of positive changes at both Walt Disney World, and on the other side of the Atlantic, in London.
During April of last year, there was a significant decline in attendance at both Walt Disney World Resort and Disneyland Paris. Although the parks both still reported record breaking revenue, they fell far short of expectations.
The negative effect on the overall Disneyland Resort budget was most noticeable during the month of June and July. The theme parks did not perform as well as they normally would have due to a number of unfortunate events, like coronavirus.
Another positive change at Walt Disney World came about when CEO Bob Iger was elected to a second term as CEO. Mr. Iger is now in charge of Disney’s international parks business, which is one of the fastest growing parts of the company.
The increase in revenue generated by these parks in Asia will help to ease the worry about the theme park business in the United States.
The other part of the company that benefited from the change was the stock price of Disney. The stock quickly gained in value once Mr. Iger took over the helm of the company.
A lot of people expect revenue to increase at Disneyland Resort in the near future. If this prediction is true, then Disney will be able to increase their annual operating budgets and hopefully return to the healthy profits they experienced for the last two years.
The problems faced by Disney in the past are responsible for much of the downfall, but the company did try hard to change them. Many people lost confidence in Disney and its ability to run its parks successfully, so any potential changes may not affect park visitors too much.