Disney Adds Fewer Than Expected Disney+ Subscribers, 2Q Revenue Falls Short
By Erich Schwartzel and Allison Prang
Walt Disney Co. added 8.7 million Disney+ subscribers in the
second quarter and its parks segment logged an operating loss as
the company faces an economy trying to emerge from the Covid-19
Disney+ ended the quarter with 103.6 million subscribers,
compared with 94.9 million as of Jan. 2. Analysts polled by FactSet
were expecting 109.3 million subscribers.
In March, the streaming service passed the 100
million-subscriber mark after 16 months of operation, cementing its
status as the most successful streaming entrant since Netflix Inc.
defined the field years ago.
The company's parks, experiences and products business -- which
includes its storied Disney World and Disneyland resorts -- saw a
44% drop in revenue compared with a year earlier. That division
reported an operating loss of $406 million.
Overall, Disney's total revenue fell 13% from the comparable
2020 period to $15.61 billion. According to FactSet, analysts were
expecting $15.86 billion.
Disney logged $901 million in net income, or earnings of 49
cents a share. A year earlier, the company's earnings were $460
million, or 25 cents a share. The company's tax expenses a year ago
were higher, which hurt its year-earlier results, and the company
also logged $305 million in net other income for the recent
Adjusted earnings were 79 cents a share, while analysts were
expecting 26 cents a share according to FactSet.
Shares fell 4.5% in after-hours trading.
Write to Allison Prang at email@example.com
(END) Dow Jones Newswires
May 13, 2021 16:44 ET (20:44 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.