Walt Disney Co (NYSE:DIS) stock rose 4.05% (As on Feb 10, 11:30:35 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the first quarter of FY 22. The streaming business is where Wall Street is placing much of its focus, the launch of a new franchise with Encanto, and a significant increase in total subscriptions across our streaming portfolio to 196.4 million with Disney+ adding 11.8 million subscribers last quarter to hit 129.8 million total. Hulu added 6.6 million subscribers to reach 45.3 million subs (likely driven by an aggressive Black Friday offer at a $1 per month rate), and ESPN+ added 4.2 million subscribers to reach 21.3 million. Average revenue per user (ARPU) improved significantly at Disney+ to $6.68, up 15 percent from a year prior, thanks to fewer wholesale customers. Theme parks in particular saw a significant turnaround, generating revenue of $7.2 billion, more than double the same quarter a year prior. Disney’s linear networks had revenue of $7.7 billion, about flat from the same quarter a year ago, with direct-to-consumer rising by 34 percent year over year to $4.7 billion. Costs at all of the company’s streaming and linear businesses were on the rise, driven by increasing productions costs and sports rights.

Moreover, Domestic Channels revenues for the quarter increased 1% to $6.2 billion, and operating income decreased 21% to $0.9 billion, which reflected lower operating income at both Cable and Broadcasting. The decrease at Cable was primarily due to higher programming and production costs and increased marketing spending, partially offset by growth in advertising and affiliate revenue. The increase in programming and production costs was driven by higher costs for the College Football Playoffs (CFP), NFL and MLB programming and an increase in sports production costs due to the cancellation of events in the prior-year quarter. The increases in CFP and NFL programming costs were due to higher contractual rates. International Channels revenues for the quarter decreased 4% to $1.6 billion and operating income decreased 2% to $369 million.

DIS in the first quarter of FY 22 has reported the adjusted earnings per share of $1.06, beating the analysts’ estimates for the adjusted earnings per share of 58 cents. The company had reported the adjusted revenue growth of 34.3 percent to $21.8 billion in the first quarter of FY 22, beating the analysts’ estimates for revenue of $18.78 billion.