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Disney earnings exceed expectations as parks reopen and Disney+ grows |

(CNN) — Theme parks are again, and that is excellent news for Disney, which on Thursday reported better-than-expected earnings and…

By Staff , in Amusement Parks , at August 14, 2021

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(CNN) — Theme parks are again, and that is excellent news for Disney, which on Thursday reported better-than-expected earnings and a return to income development for the primary time in 5 quarters.

The corporate introduced in $17 billion in gross sales, up 45% from identical interval final yr. That is a bit larger than Wall Streets’ expectation of $16.8 billion, and the information despatched shares up 4% in after-hours buying and selling.

The corporate reported earnings of $995 million within the third quarter, a major enchancment from the $4.8 billion loss posted this time final yr.

This was the primary quarter that each one of Disney’s world theme parks have been open for the reason that begin of the pandemic, permitting the corporate to renew some semblance of normalcy. The parks, expertise and merchandise division introduced in $4.3 billion within the third quarter, up from $1.1 billion in the identical quarter final yr.

Disney+, which carried the corporate by the pandemic as parks remained closed and operated at restricted capacities, grew to 116 million subscribers in the latest quarter, exceeding the 112 million subscribers Wall Road analysts anticipated.

On the finish of Could, the corporate reported slower subscriber development than anticipated, largely due to elevated vaccination charges and relaxed Covid laws that bought folks out of the home once more.

Since then, the platform launched “Black Widow” and “Jungle Cruise” by its Premier Entry Perform, which provides subscribers the chance to observe films on Disney+ the day they’re launched in theaters for a further cost of $29.99. The flicks introduced in $60 million and $30 million respectively through Disney+ alone.

The corporate is at the moment grappling with a lawsuit from Scarlett Johansson, who starred in “Black Widow.” Within the lawsuit, Johansson alleges that Disney breached her contract by concurrently releasing the movie on Disney+ and in theaters.

As Delta variant instances proceed to surge, particularly in Florida, it is unclear how the corporate’s theme parks can be affected. Disneyland Paris in July started requiring company to current proof of vaccination, a destructive PCR take a look at outcome or a optimistic antigen take a look at proving they’ve already been contaminated with Covid earlier than they’ll enter the park.

The corporate stays “bullish” about its parks’ recoveries and continues to see “actually robust demand for our parks,” Bob Chapek, Disney’s CEO, mentioned on a post-earnings name with traders and analysts Thursday.

Disney has applied a reservation system at its parks to handle capacities and enhance visitor experiences. Reservations have now surpassed third quarter attendance ranges, Chapek mentioned.

The corporate anticipates all of its parks can be totally staffed once more by the top of 2021.

The-CNN-Wire

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