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Apr 03, 2021
Disney Q2 2021 Earnings Report
Disney's financial performance showed encouraging signs of recovery with theme park reopenings, increased studio production, streaming service success, and sports rights deal expansions.
Key Takeaways
The Walt Disney Company reported a mixed second quarter for fiscal year 2021. While diluted EPS increased to $0.50 from $0.26 year-over-year, and revenue reached $15.613 billion, the company continued to be impacted by COVID-19, particularly in its Parks, Experiences and Products segment. The growth in streaming services and improved results in Direct-to-Consumer mitigated some of the negative impacts.
Diluted earnings per share (EPS) from continuing operations increased to $0.50, up from $0.26 in the prior-year quarter.
Excluding certain items, diluted EPS increased 32% to $0.79 from $0.60 in the prior-year quarter.
Revenues for the quarter totaled $15.613 billion, a 13% decrease compared to $18.025 billion in the prior-year quarter.
The Disney Parks, Experiences and Products segment was significantly impacted by COVID-19, with an estimated $1.2 billion impact on operating income compared to the prior-year quarter.
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Disney Revenue by Segment
Disney Revenue by Geographic Location
Revenue by Segment
Entertainment Revenue
CapyFin.comSports Revenue
CapyFin.comExperiences Revenue
CapyFin.comRevenue by Geographic Location
Domestic Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
The company did not provide specific forward guidance, but the earnings report suggests optimism due to the reopening of theme parks and resorts, increased production at studios, and the success of streaming services.
Positive Outlook
- Reopening of theme parks and resorts indicates recovery in the Disney Parks, Experiences and Products segment.
- Increased production at studios suggests a strong pipeline of content for distribution.
- Continued success of streaming services highlights growth in the Direct-to-Consumer segment.
- Expansion of multiyear sports rights deals for ESPN and ESPN+ provides long-term growth opportunities.
- Lower programming and production costs in Linear Networks, contributing to operating income increase.
Challenges Ahead
- COVID-19 continues to adversely impact financial results, particularly in the Disney Parks, Experiences and Products segment.
- Theatrical releases have been delayed, shortened, or canceled, affecting film distribution revenues.
- Disruptions in the production and availability of content persist due to COVID-19.
- Additional costs are being incurred to address government regulations and implement safety measures.
- Decrease in average monthly revenue per paid subscriber for Disney+ due to the launch of Disney+ Hotstar.
Revenue & Expenses
Visualization of income flow from segment revenue to net income