disappointing quarterly numbers
Disney makes significant losses with streaming

09/11/2022, 00:13

Light and Shadow in Walt Disney: The Group’s own streaming service Disney+ is gaining more subscribers than expected. However, the quarterly results fell short of analysts’ expectations.

American media conglomerate Walt Disney reported lower-than-expected profit for the fourth quarter of the fiscal year. Losses in the streaming business widened, offsetting strong performance from the company’s theme parks. Sales were also lower than expected. However, the group was able to convince with the sheer number of new subscribers to Disney+. During the reporting period, 12.1 million new subscriptions were completed, compared to only 8.86 million expected by analysts. Disney shares fell 6.7 percent in after-hours trading.

However, investment costs hit the office to expand the streaming business. The division reported a loss of $1.47 billion in the fourth quarter, more than double the same period last year. Since the launch of Disney+ three years ago, the streaming division has lost more than $8 billion.

For the quarter ended October 1, Disney reported earnings of $162 million, or 9 cents per share, an adjusted 30 cents per share, versus 37 cents per share in the year-ago quarter. However, analysts were expecting adjusted earnings of 56 cents per share. Revenue rose 9 percent year-on-year to $20.2 billion, beating analysts’ expectations. On the other hand, things went well in the amusement parks division, which set a new record sales of $7.42 billion.

Disney stock is down 35 percent this year compared to its peers. Streaming competitors’ stock prices such as NetflixWarner Bros. Discovery and Paramount Global have all fallen 45 percent or more this year.