Walt Disney Co fell short of Wall Street estimates for the number of new customers signed up to the Disney+ streaming service, according to an earnings report on Thursday that showed the company’s quarterly profit topped forecasts.
Shares of Disney fell 4% to $178.34 in after-hours trading.
Adjusted earnings-per-share came in at 79 cents for January through April 3, Disney said. Analysts had expected 27 cents, according to IBES data from Refinitiv.
Disney is focusing on quickly building its streaming service to challenge Netflix Inc as audiences move away from cable TV. The company’s popular theme parks remain in recovery mode with attendance limits due to the COVID-19 pandemic.
Disney+ reached a total of 103.6 million customers as of early April, the company said. Two Marvel superhero series, “WandaVision” and “The Falcon and the Winter Soldier,” debuted during the quarter. Analysts had projected 109.3 million, according to FactSet.
The average monthly revenue per paid subscriber for Disney+ decreased from $5.63 to $3.99, the company said, due to the launch of Disney+ Hotstar in overseas markets. Factset estimates showed Wall Street was expecting average revenue of $4.10 per user.
Overall revenue fell 13% to $15.61 billion in the second quarter ended April 3, compared with analysts’ estimate of $15.87 billion, according Refinitiv.
Net income from continuing operations rose to $912 million, or 50 cents per share, in the second quarter from $468 million, or 26 cents per share, from a year earlier.
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