Walt Disney (DIS) is looking forward to a more profitable year ahead, a goal it is willing to hit with its current product diversification efforts.
American multinational entertainment and media company Walt Disney Co (NYSE: DIS) has released its fourth-quarter (Q4) 2021 earnings reports with the firm’s figures coming below Wall Street estimates.
Walt Disney reported total revenue of $18.53 billion for the quarter ended October 2, compared with the $18.79 billion polled by Refinitiv analysts. Adjusted Earnings Per Share (EPS) came in at 37 cents against the 51 cents expected. For the fiscal year ended October 2, Walt Disney also unveiled a total revenue of $67.41 billion, up 3% from the $65.388 billion recorded in the year-ago period.
While StreetAccount projected an ambitious 9.4 million new subscribers for the company, a total of 2.1 million Disney+ subscribers were added in the fourth quarter. This brings the company’s total subscribers to 118.1 million as against the 125.4 million total Disney+ subscribers being expected by StreetAccount.
Barring the Wall Street expectations, Walt Disney has had a very productive year thus far, as it worked its way to re-open most of its businesses following the coronavirus pandemic.
“This has been a very productive year for The Walt Disney Company, as we’ve made great strides in reopening our businesses while taking meaningful and innovative steps in Direct-to-Consumer and at our Parks, particularly with our popular new Disney Genie and Magic Key offerings,” said Bob Chapek, Chief Executive Officer, The Walt Disney Company.
During the company’s earnings call, the plans to grow its total number of subscribers to 230 and 260 million were reiterated, citing the quality of its entertainment business as a basis to drive the massive user inflow.
“We remain focused on managing our DTC business for the long term, not quarter to quarter,” Chapek said. International expansion and new content are the primary drivers for the company to reach that target, Chapek later told CNBC.
The slip from analysts’ earnings estimates pushed DIS shares down 5.13% to $165.50 in the Pre-Market, compounding the bearish close of 0.38% recorded in Wednesday’s trading session.
Disney (DIS) to Grow Its Earnings through Innovation Diversity
Walt Disney (DIS) is looking forward to a more profitable year ahead, a goal it is willing to hit with its current product diversification efforts. In line with the growing trend in relation to the Metaverse, the Walt Disney boss said they firm has a plan in this regard.
“Suffice it to say our efforts to date are merely a prologue to a time when we’ll be able to connect the physical and digital worlds even more closely, allowing for storytelling without boundaries in our own Disney metaverse,” he said during the call, adding that, “And we look forward to creating unparalleled opportunities for consumers to experience everything Disney has to offer across our products and platforms wherever the consumer may be. As we look ahead to this next frontier, given our unique combination of brands, franchises, physical and digital experiences, and global reach, we see limitless potential, and that makes us as excited as ever about The Walt Disney Company’s next 100 years.”
The push into Metaverse-related offerings is gradually becoming a broad trend that Meta Platforms Inc (NASDAQ: FB) is looking to lead, however, most outfits are repositioning to become a part of the future.