NEW YORK — Disney second-quarter revenue dropped as the pandemic continued to weigh on its parks and theme parks. But net income beat expectations and CEO Bob Chapek said signs of recovery can be seen across the company’s business as the pandemic begins to wane.
Disney+ subscribers more than doubled from a year ago to 103.6 million subscribers as of April 3. That was lower than some analysts expected, but Chapek said the company is still on track to reach its goal of 300 million to 350 million subscribers across all platforms by 2024.
Shares dropped 4 percent to $171.10 in aftermarket trading.
Net income attributable to Disney for the three months ended April 3 totaled $901 million, or 49 cents per share. Excluding one-time items, net income totaled 79 cents per share. One time costs were related to closing an animation studio and some Disney-branded retail stores, and severance at some parks and resorts. That beat analyst expectations of 26 cents per share, according to FactSet.
Revenue dropped 13 percent to $15.61 billion, from $18.03 billion last year. That was short of analyst expectations of $15.86 billion.
Disney+ and its vast library of Disney movies and TV shows, plus hit original series like Marvel’s “WandaVision” and the Star Wars spinoff “The Mandalorian,” have helped drive signups. People stuck at home during the pandemic over the past year also boosted subscriptions, but that could begin to ease as things open up again.
Revenue per Disney+ customer dropped 29 percent to $3.99. That’s because the figures include Disney’s offering in India, where customers pay less than in other parts of the world.
Revenue from parks dropped 44 percent to $3.17 billion. But parks are beginning to show signs of life after being shuttered during most of the pandemic. Disneyland in Anaheim, California, reopened on April 30, after the quarter ended. Disney World in Orlando and other parks around the world were open during the quarter, although at reduced capacity.
Movie theaters shuttered during the pandemic have also begun to reopen since late March. Disney plans to release “Cruella,” a live-action movie about the villain in “101 Dalmations,” starring Emma Stone, in theaters on May 28. It will release Marvel’s “Black Widow” starring Scarlett Johansson in July. Both will also be offered on Disney+ at the time of release for $30.