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The Walt Disney Co DIS

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Mixed Q2 Results for Disney as Subscriber Growth Slows at Disney+

Neil Macker, CFA Senior Equity Analyst

Analyst Note

| Neil Macker, CFA |

Disney reported a mixed fiscal 2021 second quarter as revenue fell short of FactSet consensus and operating income came in well ahead of Street expectations. Disney+ added over 8 million customers to end the quarter at 104 million subscribers, well below the 21 million new subscribers added in the fiscal first quarter. While subscriber growth has slowed, we still expect robust long-term growth for the service. The parks and theatrical businesses were hammered again by the pandemic as revenue collapsed 68% and 93%, respectively, versus a year ago. We are maintaining our wide moat rating and $154 fair value estimate.

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Company Profile

Business Description

Walt Disney owns the rights to some of the most globally recognized characters, from Mickey Mouse to Luke Skywalker. These characters and others are featured in several Disney theme parks around the world. Disney makes live-action and animated films under studios such as Pixar, Marvel, and Lucasfilm and also operates media networks including ESPN and several TV production studios. Disney recently reorganized into four segments with one new segment: direct-to-consumer and international. The new segment includes the two announced OTT offerings, ESPN+ and the Disney SVOD service. The plan also combines two segments, parks and resorts and consumer products, into one. The media networks group contains the U.S. cable channels and ABC. The studio segment holds the movie production assets.

Contact
500 South Buena Vista Street
Burbank, CA, 91521
T +1 818 560-1000
Sector Communication Services
Industry Entertainment
Most Recent Earnings Mar 31, 2021
Fiscal Year End Oct 3, 2021
Stock Type Classic Growth
Employees 188,000

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