Walt Disney announced its Second Quarter Results.

Walt Disney's Second Quarter Performance

Walt Disney (DIS), despite reporting a stronger-than-expected quarterly profit, slightly missed Wall Street’s revenue forecasts. The company experienced a modest decline in sales alongside an increase in subscribers on its streaming platforms.

The company’s non-GAAP earnings per share for the fourth quarter was set at $1.11. This figure was $0.09 higher than analysts' expectations. However, the company's revenues fell by 0.5% year-over-year to $22.46 billion, which was $320 million below expectations.

Disney’s streaming business model continues to grow. Total subscriptions for Disney+ and Hulu rose by 12.4 million compared to the previous quarter, reaching 196 million subscribers. Disney+ currently has 132 million subscribers, while Hulu’s subscribers increased by 15%.

The average monthly revenue per paid Disney+ subscriber in the U.S. remained unchanged due to an increase in advertising revenues. The average monthly revenue per international Disney+ subscriber rose from $7.67 to $8.00 due to favorable changes in currency and subscriber numbers. However, Hulu experienced a slight decline in average revenue per user due to lower advertising revenues and subscriber mix effects.

Despite missing sales targets, the increase in streaming service usage and stable profit margins created an optimistic outlook regarding Disney’s chances of making money in the direct-to-consumer sector. However, following the announcement of the results, shares fell by 3% in pre-market trading.