After the market closed for the fiscal second quarter, Disney reported a drop of about 4% in its shares.
As Disney+, the company’s streaming service recorded lesser than the estimated number of subscribers, Disney’s revenue missed the Wall Street estimates.
The results were as follows:
- To an expected revenue of $15.85 billion, they made $15.61 billion
- To an expected earnings per share of 32 cents they made 79 cents per share.
The yearly expectations for revenue were estimated at $20.86 billion and for earnings per share at $1.53.
The COVID-19 pandemic has had a varied impact on Disney’s different business verticals. Disney’s OTT platform, Disney+, after its launch in 2019, saw a surge in subscribers last year and in comparison, have managed to overshoot 100 million subscribers in March as reports stated.
Its swift projected growth has made Disney+ a rival to Netflix as well.
However, according to Bloomberg data, at the end of its second quarter, the entertainment giant recorded a fall in its estimated subscribers of 110.3 million by 6.7 million.
Disney’s management are expecting a profit turnaround from their Direct-to-consumer verticals by the end of fiscal year 2024.
Disney’s shares after the closing on Wednesday have fallen 1.8%, coming down below S&P 500’s 8.2% increment.
However, after Disney’s theme park in California having opened with a capacity of 25% at the end of April, and only to its residents, the company hopes to see a near-term turnaround.