Walt Disney Co (DIS.N) streaming growth fell below Wall Street estimates on Thursday after seeing strong consumer demand at the start of the pandemic, while the company’s quarterly profits exceeded forecasts.
Disney shares fell 3.7% after hours.
CEO Robert Chapek said film and TV shows are resuming normal production and that new offerings will help drive growth in subscribers to Disney +, ESPN +, Hulu and Hotstar.
Adjusted earnings per share stood at 79 cents from January to April 3, Disney said. Analysts were expecting 27 cents, according to IBES data from Refinitiv.
Disney is focused on quickly creating its streaming service to challenge Netflix Inc (NFLX.O) as audiences move away from cable TV. The company’s popular theme parks remain in recovery mode with attendance limits due to the COVID-19 pandemic.
Disney + reached a total of 103.6 million customers in early April, the company said. Two Marvel superhero series, “WandaVision” and “The Falcon and the Winter Soldier,” debuted in the quarter. Analysts had projected $ 109.3 million, according to FactSet.
Average monthly income per paying subscriber for Disney + has increased from $ 5.63 to $ 3.99, the company said, due to the launch of Disney + Hotstar in overseas markets. According to Factset estimates, Wall Street expected an average income of $ 4.10 per user.
Overall revenue fell 13% to $ 15.61 billion in the second quarter ended April 3, from an analysts estimate of $ 15.87 billion, according to Refinitiv.
Net income from continuing operations rose to $ 912 million, or 50 cents per share, in the second quarter, from $ 468 million, or 26 cents per share, from a year earlier.
Disney has entered into a 2028 renewal deal with Major League Baseball with 30 regular season exclusive games. The deal includes an option to simulcast all live MLB coverage for ESPN networks on ESPN +.
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