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 subscriber growth on its streaming platforms.

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

Disney’s streaming business model continues to grow. 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 saw a 15% increase in its subscriber count.

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

Despite missing sales targets, the increased usage of streaming services 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.