The Walt Disney Co. missed Wall Street expectations on earnings and revenue for the fourth quarter.
The Burbank entertainment and media giant reported on Tuesday an adjusted net income of $649 million (30 cents a share) for the quarter ending Oct. 1, compared with adjusted net income of $791 million (37 cents) in the same period a year earlier. Revenue increased from the prior year by 9% to $20.2 billion.
Analysts on average expected earnings of 57 cents on revenue of $21 billion, according to Thomson Financial Network.
Bob Chapek, chief executive of Disney, said that the fourth quarter saw strong subscription growth, including 12.1 million Disney Plus subscribers being added to the streaming service.
As of the end of the quarter, Disney reported a total domestic Disney Plus subscriber base of 46.4 million, or an increase of 20% from the same period a year ago.
The rapid growth of Disney Plus in just three years since the service launched is a result of the company’s decision to invest in creating incredible content and rolling out the service internationally, Chapek said.
“By realigning our costs and realizing the benefits of price increases and our Disney Plus ad-supported tier coming Dec. 8, we believe we will be on the path to achieve a profitable streaming business that will drive continued growth and generate shareholder value long into the future,” Chapek said in a statement.
Disney Parks, Experiences and Products revenues for the quarter increased to $7.4 billion compared to $5.5 billion in the prior-year quarter, according to a release from Disney.
Segment operating income increased $900 million to $1.5 billion compared to $600 million in the prior-year quarter. Higher operating results for the quarter reflected increases at the domestic and international parks and experiences businesses and, to a lesser extent, its merchandise licensing business, the company’s release said.
Shares in Disney closed down 53 cents, or a fraction of a percent, to $99.90 on the New York Stock Exchange, on a day when the Dow Jones closed up just over 1%.