Entertainment

Disney+ posts 26.5 million subscribers, beats estimates


(Reuters) – Walt Disney Co said its Disney+ streaming service had 26.5 million subscribers at the end of the quarter and beat analysts’ estimates for quarterly revenue on Tuesday, riding on the box-office success of its animated film “Frozen:2”.

FILE PHOTO: A man looks at his phone as he passes by a screen advertising Walt Disney’s streaming service Disney+ in New York City, U.S., November 12, 2019. REUTERS/Brendan McDermid/File Photo

Disney had reported 10 million sign-ups for the $7-a-month Disney+ one day after its launch in November, in a strong streaming debut that was further boosted by the success of Star Wars prequel “The Mandalorian”.

The streaming service numbers benefited from Disney’s partnership with Verizon Communications Inc.

In October, the largest U.S. wireless carrier by subscribers said it would offer a year-long subscription to Disney+ with its unlimited plans.

The service is currently available in the United States, Canada, Australia and New Zealand and will launch in the U.K., France, Germany, Italy, Ireland, Spain, Austria and Switzerland on March 24.

Disney+ had 26.5 million subscribers at the end of Dec. 28, while analysts at three brokerages had expected the company to report 20 million subscribers.

The direct-to-consumer and international segment, which houses Disney+, reported an operating loss of $693 million, compared with an operating loss of $136 million a year earlier.

Operating income from its parks and consumer products business rose 8.6% to $2.34 billion.

The movie studio segment reported an operating income of $948 million, up from $309 million a year earlier.

Overall revenue rose 36% to $20.86 billion, beating estimate of $20.79 billion according to IBES data from Refinitiv.

The company’s shares rose 1.3% to $146.72 in trading after the bell.

Reporting by Neha Malara in Bengaluru and Lisa Richwine in Los Angeles; Editing by Sriraj Kalluvila



READ SOURCE

Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.