The Disney Group released its results for the fourth quarter of 2020 at the end of the day on Thursday, February 11. After three quarters in the red, it is this time an upward record that the group records, in particular thanks to its video streaming activities. We invite you to learn more about this financial news.
Yesterday, at the very end of the European trading session, we were able to read the quarterly results published by the Disney Group, which were above Wall Street's expectations and forecasts. In view of the details of these results, we can notably conclude that it is the gains from streaming or online video services that have made it possible to offset the impact of park closures and the postponement of movie releases due to the Covid-19 pandemic.
Indeed, during the last quarter of 2020, certain series such as the TV series Star Wars and other programmes based on this cult film saga enabled Disney to attract a large number of new subscribers, to the point of making its platform a truly dangerous competitor for the leader in the sector, Netflix.
Indeed, the Disney + platform has reached 94.9 million subscribers as of January 2, as Disney states in its press release, whereas it had only 86.8 million at the beginning of December. Adding these figures to those of the Hulu platform and ESPN+ brings the total number of paying subscribers to more than 146 million.
Following this announcement, the Disney Group's stock ended the US trading session up at $109.86, a record high with a 3.6% rise in post-closing trading.
Thus and during the months of October to December, the group recorded an adjusted gain of 32 cents per share while Wall Street was expecting a loss of 41 cents per share.
The reason for this increase is undoubtedly the decline in sales in the fourth quarter to USD 16.25 billion compared to USD 20.88 billion a year earlier over the same period but remained above analysts' forecasts at USD 15.93 billion.
It should be recalled that because of the Covid-19 pandemic, the group's amusement parks in California, Hong Kong and Paris are still closed, while other parks have drastically reduced the number of their authorized visitors in order to respect social distancing. Several blockbuster productions by Disney studios have also had to be postponed while movie theatres are still closed. This is why Disney decided last October to refocus its activities on streaming.