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Highlights
- Disney, on Wednesday, February 9, said that its legacy parks business more than doubled its revenue in the first quarter of fiscal 2022 from the previous year, mainly supported by relaxed COVID rules.
- The amusement parks businesses are likely to bolster with easing pandemic restrictions.
- A Toronto-headquartered company listed here generated a free cash flow of C$ 79 million in the latest quarter, a 28 per cent increase YoY.
Walt Disney Company (NYSE:DIS, DIS:US), on Wednesday, February 9, said that its legacy parks business more than doubled its revenue in the first quarter of fiscal 2022 as compared to the previous year. This, the company noted, was mainly supported by the relaxation of COVID-19 rules.
The amusement parks businesses are likely to bolster with easing pandemic restrictions. So, on that note, let us explore two entertainment stocks to watch in 2022.
Walt Disney Company (NYSE: DIS, DIS:US)
Amid relaxed COVID-19 restrictions, Disney’s amusement park business noted a segment revenue of US$ 7.23 billion in the first quarter of fiscal 2022, which was more than a 100 per cent growth year-over-year (YoY).
The California-based company stated that this significant growth was due to high attendance in amusement parks and increased stay at Disney hotels and cruise ship sailings.
The US$ 268-billion market cap company saw its total revenues reach US$ 14.58 billion in the latest quarter, which was up 34 per cent YoY. Its first-quarter net income jumped to US$ 1.15 billion in FY2022, substantially up from US$ 29 million a year ago.
DIS stock closed at US$ 147.23 apiece on Wednesday. However, following its robust Q1 FY2022 results, the entertainment stock shot up by nearly seven per cent after trading hours on Wednesday.
Also read: Hydro One (H) & Canadian Utilities (CU): TSX stocks for green investing
Corus Entertainment Inc (TSX: CJR.B)
Corus Entertainment also noted a 10 per cent growth in its consolidated revenue to C$ 463 million in Q1 FY2022, as compared to C$ 392 million in Q1 FY2021.
The Toronto-headquartered company generated a free cash flow (FCF) of C$ 79 million in the latest quarter, a 28 per cent increase YoY.
The media and content company will pay a quarterly dividend of C$ 0.6 per share on March 31.
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Image source: © 2022 Kalkine Media®
Data source: Corus Entertainment Inc
The entertainment stocks closed at C$ 5.13 apiece on Wednesday, bringing its year-to-date (YTD) gain of almost eight per cent.
Bottomline
Many experts expect entertainment companies like Disney and Corus to do well with fading pandemic effects. However, at the same time, increasing COVID cases can adversely impact theme parks business, which can in turn impact the performance of these companies. Hence, investors should stay alert with latest news to navigate through investment decisions.
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Kajal Jain - Analyst618 PostsKajal is a commerce graduate with expertise in the financial corporate sector. At Kalkine, she writes on Canadian equities and markets. In her free time, she enjoys music and gardening and likes to travel....
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Shreya Biswas - Multimedia Journalist408 PostsShreya Biswas is a multimedia journalist with a degree from the Asian College of Journalism. Previously a literature student-turned-political reporter, she now writes on market trends at Kalkine Media. When not chasing deadlines, she enjoys bloggin...