Walt Disney Co (NYSE: DIS) stock rose 1.67% on Feb 12^th, 2021 pre-market session (Source: Google finance) after the company posted a smaller-than-expected decline in first-quarter revenue, as its fast-growing streaming business helped offset some impact from the COVID-19 pandemic on its theme park and movie studio businesses. The pandemic’s vice-like grip on the world has forced Disney to shut its theme parks in California and Hong Kong, while limiting the number of visitors at its other properties to enforce social distancing. Disney’s movie studio has also delayed major releases as many theaters remained closed. However, investors have welcomed the early success of the company’s video streaming business, which competes fiercely with Netflix Inc. The Disney+ streaming service had reached 94.9 million subscribers as of Jan. 2, more than double the subscriber base a year ago, when the service had been operating for only about two months. ESPN+ subscribers grew 83% to 12.1 million and Hulu subscribers rose 30% to 39.4 million. Further, Disney’s cruise ships have also been suspended during the pandemic time, live sporting events have been canceled, and film and TV projects have been disrupted.

Meanwhile, the cash provided by operations for fiscal 2021 declined by $1.6 billion from $1.6 billion in the prior year to $0.1 billion in the current year. The decline in cash provided by operations was due to lower segment operating results, which was partially offset by lower spending for licensed and produced film and television content.

DIS in the first quarter of FY 21 has reported the adjusted earnings per share of 32 cents, beating the analysts’ estimates for the adjusted loss per share of 41 cents, according to figures compiled by Thomson Reuters. The company had reported 22.2 percent fall in the adjusted revenue to $16.25 billion in the first quarter of FY 21, beating the analysts’ estimates for revenue of $15.93 billion, according to IBES data from Refinitiv. Operating loss from the parks and consumer products business was $119 million, compared to a profit of $2.52 billion a year earlier. The direct-to-consumer and international segment, which houses Disney+, reported an operating loss of $466 million, compared with an operating loss of $1.11 billion in the year-earlier quarter. Domestic Channels revenues for the quarter rose 1% to $6.1 billion and operating income fell 7% to $1.1 billion. The decline in operating income was due to lower results at the cable business, partially offset by an increase at the broadcasting business. International Channels revenues for the quarter rose 5% to $1.6 billion.