Disney’s recent Q2 result was a disappointment for the market as the company’s subscriber additions were below expectations. The company’s streaming platforms, Disney+, Hulu, and ESPN+ reported a total of 159 million subscribers, more than double from the 73.5 million number in the same quarter of the previous fiscal. The company added 12.2 million subscribers which was more than its rival Netflix (around 4 million additions) but its new subscriber revenues were offset by higher costs associated with programming as well as expansion into additional foreign markets. Disney’s top-line continued to be hit by headwinds associated with its theme parks segment which dropped by 44% as compared to the same quarter of the previous fiscal. We do not expect a significant recovery until the final quarter of 2021. However, we are optimistic about Disney given its current valuation and maintain our ‘Buy’ rating with a revised target price.
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⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
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⦁ Discounted Cash Flow Valuation
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⦁ Key Risks
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