Luckily for the House of Mouse and its investors, Disney + grew.
The results sent shares up as much as 4.5% in early after-hours trading, but the stock’s momentum reversed and then fell 3%.
Bob Chapek, Disney’s CEO, said in the company’s letter to investors Wednesday that Disney’s results “once again proved that we are in a league of our own.”
“As we look ahead to Disney’s second century, I am confident we will continue to transform entertainment by combining extraordinary storytelling with innovative technology to create an even larger, more connected, and magical Disney universe for families and fans around the world,” he added .
Chapek’s reference to “a league of our own” seems somewhat pointed given the extremely bad year that Netflix has had so far in 2022.
Disney +’s better-than-expected growth shows that Netflix’s problems may be unique to the streaming service rather than a market wide issue – for now, at least.
As if to further that point, Disney reported that all of its streaming services – which includes Hulu and ESPN + – grew in the second quarter. The company’s services now have 205.6 million users.
That said, building a successful streaming services is costing Disney gobs of money.
The company’s loss in its direct-to-consumer unit was $ 887 million in the second quarter – more than triple than it was a year ago. Disney attributed the lower results at Disney + to “higher programming and production, marketing and technology costs, partially offset by an increase in subscription revenue.”
Elsewhere in the Disney media kingdom, the company’s Parks, Experiences and Products segment notched $ 6.6 billion in revenues – more than double from a year ago because attendance increases at Disney parks, hotels and cruise ship sailings as Covid restrictions have eased, the company said .
“Our domestic parks and resorts were open for the entire current quarter, whereas Disneyland Resort was closed for all of the prior-year quarter, and Walt Disney World Resort operated at reduced capacity in the prior-year quarter due to COVID-19 restrictions, “the company said.