Walt Disney Company reported first-quarter sales, earnings and streaming-subscriber growth that handily beat analysts’ forecasts, giving a boost to a chief executive who’s finally out of the shadow of his predecessor.
Bob Chapek has been chief executive of the world’s largest entertainment company for two years this month, but the current period is the first since the departure of longtime Disney leader Bob Iger, who retired as executive chairman in December.
Disney’s earnings increased to $1.06 a share, well ahead of the 57-cent average of analysts’ estimates. Sales in the period ended January 1 increased to $21.8 billion, also topping expectations, the Burbank, California-based entertainment company said on Wednesday.
The company’s namesake parks and the new Disney+ streaming service delivered big upside surprises, providing a one-two punch that cheered investors and lifted the shares as much as 10 per cent in extended trading.
Disney’s parks division generated $2.45bn in operating income, compared with a loss a year earlier. Revenue from the resorts unit doubled from lows during the pandemic, helped by the introduction of new services such as Genie+, a system that allows guests to pay an extra fee to jump in shorter lines for rides.
New subscriptions to Disney+ came in at 11.8 million, far above the 8.17 million that Wall Street had projected, with the total now approaching 130 million. Disney shares tumbled in November after the company announced subscriber numbers that fell short of Wall Street projections. Netflix added to investor worries about streaming growth with a tepid outlook last month.
Shares of Disney jumped on the latest report, rising as high as $162.10 in extended trading. The stock had declined 4.9 per cent this year through Wednesday’s close in New York.
Mr Chapek’s accession to chief executive, coming shortly before the pandemic began to spread across the US “couldn’t have happened at a tougher time,” said Markus Hansen, a money manager with Vontobel Asset Management, which held about 1.77 million Disney shares as of September 30, according to Bloomberg data. Mr Chapek’s experience running the theme parks before his promotion likely helped in the company’s recovery.
“He’s proved his mettle here,” Mr Hansen said.
On a call with investors on Wednesday, Disney chief financial officer Christine McCarthy said new technologies, such as using mobile phones for hotel check-in and food ordering, have reduced costs. Mr Chapek added that a return of live events and international visitors should boost attendance going forward.
Like other media companies, Disney has made a big bet that streaming is the future, as consumers increasingly cancel traditional cable TV to watch films and TV shows online.
Losses at the direct-to-consumer unit widened to $593 million due to increases in programming, marketing and technology costs. Still, the subscriber additions, along with upbeat results from AT&T’s HBO Max business, are likely to ease investor concerns that the streaming business is slowing,
Profit in Disney’s traditional TV units, including ESPN and ABC, fell 13 per cent to $1.5bn, with higher programming costs offsetting increased advertising and fees from cable TV distributors.
Disney’s content sales unit, which includes films, reported a loss of $98m, with theatres still struggling and losses on pictures released outweighing revenue from home entertainment. Films released in the quarter included notable box office disappointments West Side Story and The Last Duel.
The Disney+ streaming service may have got a lift from the recent film “Encanto,” which was released for streaming on Christmas Eve. The animated musical delivered modest results at the box office but has really taken off online.
Encanto was the most-watched film on streaming in the two weeks after its release on Disney+, according to Nielsen. Both the soundtrack album and the song We Don’t Talk About Bruno are No 1 on the Billboard charts. The past quarter also saw streaming releases for The Beatles: Get Back and a new series based on the Star Wars character Boba Fett.
Mr Chapek said Encanto underscores that Disney can still turn films into valuable properties, even with families and older adults shunning movie theatres due to the pandemic.
“We’d love for theatrical to come back for family movies,” Mr Chapek said in an interview on Bloomberg TV. “We hope it does, but if it doesn’t we know that we’re very secure in being able to use our own platform Disney+ to help do that.”
Five personal finance podcasts from The National
To help you get started, tune into these Pocketful of Dirham episodes
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Balance is essential to happiness, health and wealth
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What is a portfolio stress test?
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What are NFTs and why are auction houses interested?
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How gamers are getting rich by earning cryptocurrencies
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Should you buy or rent a home in the UAE?
Who are the Soroptimists?
The first Soroptimists club was founded in Oakland, California in 1921. The name comes from the Latin word soror which means sister, combined with optima, meaning the best.
The organisation said its name is best interpreted as ‘the best for women’.
Since then the group has grown exponentially around the world and is officially affiliated with the United Nations. The organisation also counts Queen Mathilde of Belgium among its ranks.
Global state-owned investor ranking by size
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UAE
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Japan
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Canada
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MATCH INFO
Group B
Bayern Munich v Tottenham, midnight (Thursday)
The biogs
Name: Zinah Madi
Occupation: Co-founder of Dots and links
Nationality: Syrian
Family: Married, Mother of Tala, 18, Sharif, 14, Kareem, 2
Favourite Quote: “There is only one way to succeed in anything, and that is to give it everything.”
Name: Razan Nabulsi
Occupation: Co-founder of Dots and Links
Nationality: Jordanian
Family: Married, Mother of Yahya, 3.5
Favourite Quote: A Chinese proverb that says: “Be not afraid of moving slowly, be afraid only of standing still.”
The biog
Name: Samar Frost
Born: Abu Dhabi
Hobbies: Singing, music and socialising with friends
Favourite singer: Adele
Countdown to Zero exhibition will show how disease can be beaten
Countdown to Zero: Defeating Disease, an international multimedia exhibition created by the American Museum of National History in collaboration with The Carter Center, will open in Abu Dhabi a month before Reaching the Last Mile.
Opening on October 15 and running until November 15, the free exhibition opens at The Galleria mall on Al Maryah Island, and has already been seen at the Jimmy Carter Presidential Library and Museum in Atlanta, the American Museum of Natural History in New York, and the London School of Hygiene and Tropical Medicine.
UAE currency: the story behind the money in your pockets
Key figures in the life of the fort
Sheikh Dhiyab bin Isa (ruled 1761-1793) Built Qasr Al Hosn as a watchtower to guard over the only freshwater well on Abu Dhabi island.
Sheikh Shakhbut bin Dhiyab (ruled 1793-1816) Expanded the tower into a small fort and transferred his ruling place of residence from Liwa Oasis to the fort on the island.
Sheikh Tahnoon bin Shakhbut (ruled 1818-1833) Expanded Qasr Al Hosn further as Abu Dhabi grew from a small village of palm huts to a town of more than 5,000 inhabitants.
Sheikh Khalifa bin Shakhbut (ruled 1833-1845) Repaired and fortified the fort.
Sheikh Saeed bin Tahnoon (ruled 1845-1855) Turned Qasr Al Hosn into a strong two-storied structure.
Sheikh Zayed bin Khalifa (ruled 1855-1909) Expanded Qasr Al Hosn further to reflect the emirate's increasing prominence.
Sheikh Shakhbut bin Sultan (ruled 1928-1966) Renovated and enlarged Qasr Al Hosn, adding a decorative arch and two new villas.
Sheikh Zayed bin Sultan (ruled 1966-2004) Moved the royal residence to Al Manhal palace and kept his diwan at Qasr Al Hosn.
Sources: Jayanti Maitra, www.adach.ae
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
FIXTURES
December 28
Stan Wawrinka v Pablo Carreno Busta, 5pm
Milos Raonic v Dominic Thiem, no earlier then 7pm
December 29 - semi-finals
Rafael Nadal v Stan Wawrinka / Pablo Carreno Busta, 5pm
Novak Djokovic v Milos Raonic / Dominic Thiem, no earlier then 7pm
December 30
3rd/4th place play-off, 5pm
Final, 7pm
Scream%20VI
%3Cp%3E%3Cstrong%3EDirectors%3A%3C%2Fstrong%3E%20Matt%20Bettinelli-Olpin%20and%20Tyler%20Gillett%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%3C%2Fstrong%3E%20Melissa%20Barrera%2C%20Jasmin%20Savoy%20Brown%2C%20Jack%20Champion%2C%20Dermot%20Mulroney%2C%20Jenna%20Ortega%2C%20Hayden%20Panettiere%20and%20Courteney%20Cox%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%203%2F5%3C%2Fp%3E%0A
Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
UAE currency: the story behind the money in your pockets
match info
Southampton 2 (Ings 32' & pen 89') Tottenham Hotspur 5 (Son 45', 47', 64', & 73', Kane 82')
Man of the match Son Heung-min (Tottenham)
Last-16
France 4
Griezmann (13' pen), Pavard (57'), Mbappe (64', 68')
Argentina 3
Di Maria (41'), Mercado (48'), Aguero (90 3')
Most%20ODI%20hundreds
%3Cp%3E49%20-%20Sachin%20Tendulkar%2C%20India%0D%3Cbr%3E47%20-%20Virat%20Kohli%2C%20India%0D%3Cbr%3E31%20-%20Rohit%20Sharma%2C%20India%0D%3Cbr%3E30%20-%20Ricky%20Ponting%2C%20Australia%2FICC%0D%3Cbr%3E28%20-%20Sanath%20Jayasuriya%2C%20Sri%20Lanka%2FAsia%0D%3Cbr%3E27%20-%20Hashim%20Amla%2C%20South%20Africa%0D%3Cbr%3E25%20-%20AB%20de%20Villiers%2C%20South%20Africa%2FAfrica%0D%3Cbr%3E25%20-%20Chris%20Gayle%2C%20West%20Indies%2FICC%0D%3Cbr%3E25%20-%20Kumar%20Sangakkara%2C%20Sri%20Lanka%2FICC%2FAsia%0D%3Cbr%3E22%20-%20Sourav%20Ganguly%2C%20India%2FAsia%0D%3Cbr%3E22%20-%20Tillakaratne%20Dilshan%2C%20Sri%20Lanka%0D%3C%2Fp%3E%0A
Sole survivors
- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
- George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
- Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
- Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Auron Mein Kahan Dum Tha
Starring: Ajay Devgn, Tabu, Shantanu Maheshwari, Jimmy Shergill, Saiee Manjrekar
Director: Neeraj Pandey
Rating: 2.5/5
At Eternity’s Gate
Director: Julian Schnabel
Starring: Willem Dafoe, Oscar Isaacs, Mads Mikkelsen
Three stars
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