Disney misses on revenue and earnings but tops subscriber predictions

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Investors are looking for signs that Disney's streaming division is still on a steady path to profitability. But the economy looks to be taking a toll on some of Disney's financials.

Disney's stock was down more than 6% in after-hours trading after the entertainment giant said it missed Wall Street expectations on revenue and earnings for its fourth fiscal quarter, but surpassed expectations on streaming subscriber additions.Investors are looking for signs that Disney's streaming division is still on a steady path to profitability. But the economy looks to be taking a toll on some of Disney's financials.

Last quarter, Disney lost $1.47 billion on its direct-to-consumer streaming division, more than double the amount it lost the same quarter the year prior. Disney blamed the increased expenses on revenue losses at Disney+ and a decrease in results at Hulu. Losses, it said, were partially offset by improved results at ESPN+.

Disney said that the average monthly revenue per paid subscriber last quarter in the U.S. for Disney+, for Disney+ Hotstar in India and for Hulu's on-demand service was down compared to the same quarter the year prior. Some of those losses were attributable to lower per-subscriber ad revenue. ESPN remained a bright spot, with marginal increases in ARPU.30 cents per share adj. vs 55 cents expected, according to a Refinitiv survey of analystsDisney+ total subscriptions:

 

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Is it on a path to profitability? No. Could it be, assuming eased content spending and a reorganization of its services? Yes.

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Fonte: CNBC - 🏆 12. / 72 Consulte Mais informação »