Streaming service pushes Disney to surprise profit for Q1

Disney reported a surprising profit for the last quarter of 2020–and its first fiscal one–driven by millions in new Disney+ subscriptions.

Jon Swartz from MarketWatch reported:

Walt Disney Co.’s streaming service, Disney+, proved again to be a big plus during a pandemic that has all but shuttered the Magic Kingdom’s other businesses. And that had Disney shares up 3% in after-hours trading Thursday.

A surge in Disney+ subscriptions, to 94.9 million, led a revenue rebound from the previous quarter as the media giant continues to double-down on direct-to-consumer sales.

CNN’s Frank Pallotta wrote:

Disney’s revenue came in at $16.2 billion, which was down 22% from last year, the company said during its first quarter earnings on Thursday. While the revenue was a decline from last year, it was above Wall Street expectations.

Profits also continued to take a hit as the company reported $29 million in this quarter, down 99% from $2.1 billion last year.

CNBC’s Lauren Feiner and Sarah Whitten noted:

Average monthly revenue per paid Disney+ subscriber, however, dipped 28% compared with the same quarter last year, from $5.56 to $4.03. That’s because this number now includes subscribers to Disney+ Hotstar, which launched in India and Indonesia last year. The service has lower average monthly revenue per paid subscriber than traditional Disney+ in other markets, pulling down the overall average for the quarter.