Walt Disney announced its Second Quarter Results.

Walt Disney's Second Quarter Performance

Walt Disney (DIS) reported a stronger-than-expected quarterly profit, but slightly missed Wall Street's revenue estimates. The company experienced a modest decline in sales, alongside an increase in subscriptions on its streaming platforms.

The company's non-GAAP earnings per share were set at $1.11 for the fourth quarter, exceeding analysts' estimates by $0.09. However, the company's revenues dropped by 0.5% year-over-year to $22.46 billion, falling $320 million short of expectations.

Disney’s streaming business model is still growing. Total subscriptions for Disney+ and Hulu increased by 12.4 million compared to the previous quarter, reaching 196 million subscribers. Disney+ currently has 132 million subscribers, while Hulu's subscriber count showed a 15% increase.

In the U.S., average monthly revenue per paid Disney+ subscriber remained unchanged due to an increase in advertising revenue. Internationally, average revenue per Disney+ subscriber rose from $7.67 to $8.00, aided by favorable changes in currency and subscriber count. However, Hulu experienced a small decline in average revenue per user, affected by lower advertising revenues and changes in the subscriber mix.

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