Disney Plus subscriptions climb as earnings beat expectations

SAN FRANCISCO: US entertainment giant Disney said Thursday subscriptions to its streaming service hit 116 million as it beat earnings expectations in the third quarter.

Disney+ subscribers more than doubled from the same period a year earlier, while its Hulu and ESPN offerings also attracted more members, the company said.

Disney reported a net income of $923 million in the quarter ending July 3, compared with a loss of about $5 million during the same period last year when the pandemic closed its theme parks and other businesses.

"We ended the third quarter in a strong position, and are pleased with the company´s trajectory as we grow our businesses amidst the ongoing challenges of the pandemic," chief executive Bob Chapek said in the earnings release.

Disney´s portfolio of streamers ended the quarter with a combined 174 million subscribers, according to Chapek.

He said on an earnings call that Disney would win fans to its streaming services by leveraging hit franchises such as its Marvel Cinematic Universe, Star Wars movies and shows and Pixar animated features and shorts to tell "great stories."

Disney said it was continuing to deal with the impact of the Covid-19 pandemic, particularly on its theme parks, resorts and cruise ships.

Theme parks and resorts have been able to reopen at various points, but with reduced capacity.

Disney has delayed, shortened or canceled theatrical runs for films and stage plays, and as theaters re-open the company faces capacity restrictions and shifts in regulations as the pandemic ebbs and surges.

"Although most film and television production resumed beginning in the fourth quarter of fiscal 2020, we continue to see disruption of film and television production, as well as live sports events, depending on local circumstances," the company said in the earnings release.

"We have and will continue to incur additional costs to address government regulations and implement safety measures for our employees, talent and guests."

Disney expects costs related to the pandemic to total about $1 billion in the current fiscal year.

Disney shares were up more than five percent in after-hours trading that followed release of the earnings figures.