A performer dressed as Mickey Mouse entertains guests during the reopening of the Disneyland theme park in Anaheim, California, U.S., on Friday, April 30, 2021.
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Disney reported second quarter results Thursday, posting lower-than-expected revenue and subscriber counts for its streaming service.
The company’s stock dipped more than 4% in after-hours trading.
- Earnings per share: 79 cents vs 27 cents expected in a Refinitiv survey of analysts
- Revenue: $15.61 billion vs $15.87 billion expected in the survey
The company missed on subscriber estimates for Disney+, coming in at 103.6 million paid subscribers. It was expected to post 109 million. Average monthly revenue per user also dipped 29% year over year to $3.99, which the company attributed to the launch of Disney+ Hotstar.
The streaming service had been bolstering the company’s success as it was losing out on business from Covid restrictions.
Revenue at Disney’s parks, experiences and products segment fell 44% to $3.2 billion, as many of its theme parks were either closed or operating at reduced capacity and its cruise ships and guided tours were suspended.
The company said the outbreak cost this division around $1.2 billion in lost operating income during the latest quarter.
Disney reopened its two California-based parks on April 30, so any revenue garnered over the last few weeks is not reflected in the fiscal second-quarter results. However, the parks’ reopening could boost expectations for the fiscal third quarter. As of Thursday, Disney’s Paris-based theme park is the only location that has not reopened to the public.
In February, Disney’s Chief Financial Officer Christine McCarthy said that for the parks that have been open during the pandemic, the company was able to make “a net incremental positive contribution” from the guests who visited despite reduced capacity levels.
This is a developing story.
