Disney said revenues continued strong at its Direct-to-Consumer operations during its fiscal second quarter to 3 April, but that the total was still pulled down by Disney Parks, Experiences and Products, falling 44 percent to USD 3.17 billion, amid the continuing coronavirus pandemic. The company added that recovery is starting, with the reopening of theme parks and resorts, helped also by streaming services and the expansion off the company’s portfolio of sports rights deals for ESPN and ESPN+.
Total revenues fell 13 percent from the year to USD 15.61 billion, with Disney Media and Entertainment Distribution up 1 percent to USD 12.4, fueled by Direct-to-Consumer, which increased 59 percent to USD 3.99 billion. With the company’s Linear Networks operations, revenues at both Domestic and International Channels fell 4 percent, to USD 5.41 billion and USD 1.32 billion, respectively. The profit from continuing operations jumped meanwhile by 95 percent to USD 912 million though cash provided by continuing operations halved (-56%) to USD 1.39 billion and the free cash flow sank 67 percent to USD 623 million.
Hulu results improved on the back of subscription revenue growth and higher advertising revenue. Subscriber growth also helped at ESPN+, together with higher profits form Ultimate Fighting Championship pay- per-view events. At Disney+, the increase in subscribers was largely offset by higher programming and production, marketing and technology costs, plus expenses for launches in additional markets.
Disney+ ended the quarter with 103.6 million paid subscribers, from 94.9 million in the previous quarter and 33.5 million the year before. At ESPN+, subscriber numbers lifted to 13.5 million from 12.1 million and 7.9 million, respectively, while at Hulu, the advanced to 41.6 million from 39.4 million and 21.1 million, respectively.
