As per reports, Walt Disney Company (DIS) streaming service Disney+ witnessed the slowest growth since its launch missing market estimates and pushing stocks down. Also, profits from the theme park division performed below expectations in the fourth quarter, even though the quarter was the first time all parks were open since pandemic closures, however, the capacity restrictions remained in place.
Disney+ picked up 2.1 million customers during the quarter, less than half the subscribers its rival Netflix added in the same period. Analysts expected Disney+ to add 10.2 million. Bob Chapek, CEO stuck with the company’s previous forecast of 230 million to 260 million Disney+ subscribers by the end of fiscal 2024.
Disney is relying on new programming next year to boost streaming subscribers, also theme parks are expected to benefit from the United States opening its borders to many vaccinated international travelers and more U.S. children getting the COVID-19 vaccine.
As of early October, paying subscribers to Disney+ reached 118.1 million. The company’s streaming customers, including Hulu and ESPN+, totaled 179 million. The entertainment giant’s streaming media division, known as direct to consumer, reported an operating loss of $630 million in the quarter as it continued to lose money as the company paid for new TV shows and movies, marketing, and other costs. Even though attendance and spending rose at Disney’s U.S. parks, the company does not expect a “substantial recovery” in international visitors to U.S. parks until the end of 2022.
Diluted earnings per share of 37 cents, below analyst estimates of 51 cents was reported. Theme park division income reached $640 million, below market estimates of $942 million. Disney missed analysts’ estimates for quarterly revenue, which increased to $18.53 billion in the fourth quarter from $14.71 billion a year earlier. Net income stood at $159 million, or 9 cents per share, in comparison with a loss of $710 million, or 39 cents per share, a year earlier.
Dow 30 Component, The Walt Disney Company (DIS), and its subsidiaries is a diversified worldwide entertainment company that operates in four business segments: Studio Entertainment, Media Networks, Parks and Resorts, and Consumer Products & Interactive Media. To learn more about this Dow 30 Component, The Walt Disney Company (DIS), and to continue to track its progress please visit the Vista Partners Walt Disney Company, Coverage Page.
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