Walt Disney Company reported better-than-expected first-quarter revenue on Wednesday, on a steady recovery at its US theme parks during the holiday season and strong growth in streaming subscribers.
The total income of the company increased 34%to $21.82 billion in the quarter ended Jan. 1, beating analysts’ estimate of $20.91 billion, according to Refinitiv data.
Disney+, the company’s two-year-old streaming service, kept business afloat as the pandemic disrupted its theme parks, resorts and cruise ship operations.
Now, easing of government restrictions and pent-up demand have led to strong attendance at national theme parks as fears of Omicron have receded.
Shares of the entertainment company rose 8% in after-hours trading.
Net income from continuing operations was $1.15 billion, 63 cents per sharein the quarter, compared to $29 million, 2 cents per share, a year earlier.
Disney+ subscribers stood at 129.8 million at the end of the first quarter, versus Factset estimates of 129.2 million.
Investors are watching the streaming service’s growth trajectory relative to its ability to meet fiscal 2024 forecasts.
In November, Chief Executive Bob Chapek maintained the company’s earlier forecast of 230 million to 260 million Disney+ subscribers by the end of fiscal 2024.
Disney has poured billions of dollars into creating new shows to grab a piece of the online video market dominated by Netflix Inc., betting its future on a direct-to-consumer strategy.
During the first quarter, Disney+ premiered the first episode of “The Book of Boba Fett,” about the Star Wars bounty hunter; “The Beatles: Get Back,” a documentary series by filmmaker Peter Jackson, and “Hawkeye,” about the Marvel superhero.
Disney announced in November that it would offer a bundle of its three streaming services, Disney+, Hulu and ESPN+, for $13.99 a month.