Meltyy wrote a post · Feb 21, 2022 16:11

Disney is bouncing back

Changes such as mobile ordering, Genie+, Lightning Lane (ability to skip lines), and the $Disney (DIS.US)$ Park Pass reservation system could make parks more profitable in the long run. Already, the combination of revenue-enhancing and cost-reducing features has Disney's theme parks on pace to outperform revenue and operating income levels from 2019.

That highlights the effectiveness of management's improvements to the theme park business. With quarterly revenue of $7.2 billion and operating income of $2.5 billion, the segment that includes theme parks is on pace to surpass 2019's annual revenue of $26.2 billion and operating income of $6.7 billion. That's despite a still-raging pandemic and muted attendance by international visitors (typically 20% of its business).

Meanwhile in the streaming business, subscriber growth accelerated in the quarter, and management noted that the second half of the year would be better than the first. That's impressive considering the company added 11.8 million subscribers to Disney+ alone, not to mention the growth in Hulu and ESPN+. Overall, Disney has reached 196.4 million streaming subscribers, not that far behind the market leader, $Netflix (NFLX.US)$ , with 222 million.

Indeed, Chapek reiterated his confidence that Disney+ will have between 200 million and 230 million subscribers by 2024.

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