Disney (DIS) posted second quarter earnings Thursday that were largely in-line with Street forecasts, but noted that revenues from its India streaming subscribers were sharply lower, suggesting the loss-leading division will continue see red over the coming months.
The stock was further hit by comments from CFO Christine McCarthy, who said weakness in the streaming division would "linger" into the three months ending in June.
Disney said adjusted diluted earnings for the three months ending in March, the group's fiscal second quarter, came in at 93 cents per share, down 14% from the same period last year and largely in-line with the Street forecast. Group revenues, Disney said, rose 7.5% to $21.82 billion, narrowly topping Street forecasts of $21.79 billion.
Disney+ paid subscribers fell by 4 million to 157.8 million, the company said, thanks in part to the loss of televised cricket rights in India. Revenues per Hotstar+ user, meanwhile, fell 20% from last quarter to $0.59
A better-than-expected figure from each north American user, which jumped 20% from to $7.14, linked to price increases in the U.S. and Canada, helped the division post a narrower $659 million loss, compared to a $1.1 billion loss over the three months ending in December.
Parks and Experiences, meanwhile, saw revenues rise 17% from last year to $7.78 billion, thanks in part to re-opened sites in Hong Kong and Shanghai.
“We’re pleased with our accomplishments this quarter, including the improved financial performance of our streaming business, which reflect the strategic changes we’ve been making throughout the company to realign Disney for sustained growth and success,” said CEO Bob Iger.
“From movies to television, to sports, news, and our theme parks, we continue to deliver for consumers, while establishing a more efficient, coordinated, and streamlined approach to our operations,” he added.
Disney shares were marked 4.4% lower in after-hours trading immediately following the earnings release to indicate a Thursday opening bell price of $96.75 each.
