Leading American multinational entertainment and media conglomerate The Walt Disney Company (DIS) in Burbank, Calif., operates through two segments–Disney Media and Entertainment Distribution and Disney Parks, Experiences, and Products. The company has managed a solid comeback from pandemic-induced disruptions. DIS’ parks, experiences, and consumer products division generated $7.20 billion in revenues in the fiscal first quarter ended January 1, which was double the $3.60 billion it generated in the prior-year quarter. Furthermore, Disney+ subscriptions beat estimates. The company added nearly 12 million Disney+ subscriptions in the first quarter, while the service saw average revenue per user (ARPU) in the U.S. and Canada grow to $6.68 per month from $5.80 a year ago. Although the operational improvement is significant, DIS’ international locations continue to be impacted by mandatory capacity and travel restrictions. And its television and film productions are still experiencing disruptions in their pipeline.
The shares of this Burbank, Calif.-based media giant have slumped 35.9% in price over the past six months and 27.3% year-to-date to close yesterday’s trading session at $112.61. Adding to the slide was the streaming giant Netflix Inc.’s (NFLX) earnings release that showed a loss of subscribers for the first time in more than a decade, which made investors anxious about consumer spending and near-term prospects of the streaming market.
