Disney's stock was down nearly 5% in after-hours trading Wednesday after the entertainment giant reported that it missed analyst expectations on earnings, revenue and subscriber additions.
Why it matters: Despite a slowdown in subscriber growth, CEO Bob Chapek told investors on a call that the company is still on track to meet previously-announced goals of reaching 230-260 million global paid Disney+ subscribers by 2024.
Details: Chapek also said that the company still expects that Disney+ will hit profitability in 2024.
- But to get there, Disney will need to continue to focus on ways to increase its average revenue per user/subscriber (ARPU).
- The company said that its average ARPU last quarter was $4.12, down from $4.52 the quarter prior, due to the fact that it added more subscribers to its Hotstar service in India, which is offered at a much lower subscriber cost.
For the first time since the pandemic, Disney posted a profit for its parks and resorts segment, thanks mostly to the fact that all of its parks and resorts globally are officially open.
By the numbers via CNBC:
- Earnings per share: 37 cents adj. vs 51 cents expected, according to Refinitiv
- Revenue: $18.53 billion vs $18.79 billion expected, according to Refinitiv
- Total streaming subscribers: 179 million
- Disney+: 118.1 million
- ESPN+: 17.1 million
- Total Hulu: 43.8 million
- Hulu SVOD only: 39.7 million
- Hulu Live TV + SVOD: 4 million
Looking ahead, Chapek said that noted previously-announced investments...