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Jan 02, 2021

Disney Q1 2021 Earnings Report

Disney's first quarter earnings for fiscal year 2021 were released.

Key Takeaways

The Walt Disney Company reported a decrease in diluted EPS from continuing operations by 98% to $0.02, and a decrease in revenues by 22% to $16.25 billion, compared to the prior-year quarter. The results were significantly impacted by COVID-19, especially in the Disney Parks, Experiences and Products segment.

Total paid subscriptions across streaming services reached more than 146 million.

COVID-19 had an estimated detriment of approximately $2.6 billion at the Disney Parks, Experiences and Products segment.

Direct-to-Consumer revenues increased 73% to $3.5 billion.

Disney+ reached 94.9 million paid subscribers.

Total Revenue
$16.2B
Previous year: $20.9B
-22.1%
EPS
$0.32
Previous year: $1.53
-79.1%
Disney+ Paid ARMPU
$4.03
Previous year: $5.56
-27.5%
ESPN+ Paid Subscribers
12.1M
Previous year: 6.6M
+83.3%
Hulu Paid Subscribers
39.4M
Previous year: 30.4M
+29.6%
Gross Profit
$4.47B
Previous year: $7.84B
-43.0%
Cash and Equivalents
$17.1B
Previous year: $6.83B
+149.8%
Free Cash Flow
-$685M
Previous year: $292M
-334.6%
Total Assets
$202B
Previous year: $201B
+0.5%

Disney

Disney

Forward Guidance

The company is focused on transforming the company to fuel growth and enhance shareholder value.

Positive Outlook

  • Robust pipeline of exceptional, high-quality content
  • Upcoming launch of new Star-branded international general entertainment offering
  • Strategic actions to transform the Company
  • Continued growth in DTC business
  • Reaching more than 146 million total paid subscriptions across streaming services

Challenges Ahead

  • COVID-19 is expected to continue to impact the company's businesses.
  • Theme parks were closed or operating at significantly reduced capacity
  • Cruise ship sailings and guided tours were suspended.
  • Theatrical releases have been delayed, shortened, or canceled.
  • Stage play performances have been suspended.