Disney stock falls after weaker-than-expected subscriber growth

About This Source - CNBC Television

CNBC is an American pay television business news channel, which primarily carries business day coverage of U.S. and international financial markets. Following the end of the business day and on non-trading days, CNBC primarily carries financial and business-themed documentaries and reality shows.

As of February 2015, CNBC is available to approximately 93,623,000 pay television households (80.4% of households with television) in the United States.

Recent from CNBC Television:

  • Growing concern over how much alcohol Americans are consuming during the pandemic
  • Billionaire space race pits Bezos against Branson
  • Cramer’s lightning round: Buy Spotify at these levels
  • CNBC Television published this video item, entitled “Disney stock falls after weaker-than-expected subscriber growth” – below is their description.

    CNBC’s Julia Boorstin details Disney’s earnings and subscriber growth, as well as comments from CEO Bob Chapek on the quarter. For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2NGeIvi

    Disney reported second quarter results Thursday, posting lower-than-expected revenue and subscriber counts for its streaming service.

    The company’s stock dipped around 3.5% 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

    Streaming

    The company missed on subscriber estimates for Disney+, coming in at 103.6 million paid subscribers. It was expected to post 109 million, according to FactSet.

    The streaming service had been bolstering the company’s success as it was losing out on business from Covid restrictions, but it seems the rapid growth is starting to slow. Still, the company reiterated its plans to see between 230 million to 260 million subscribers to Disney+ by 2024.

    “This quarter’s numbers were exactly as we projected internally, so no disappointment here,” CEO Bob Chapek told CNBC’s Julia Boorstin.

    Average monthly revenue per user dipped 29% year over year to $3.99, which the company attributed to the launch of Disney+ Hotstar. The service has lower average monthly revenue per paid subscriber than traditional Disney+ in other markets, pulling down the overall average for the quarter.

    Disney CFO Christine McCarthy said on the company’s earnings call that excluding Hotstar, average revenue per paid Disney+ subscriber would have been $5.61 in the quarter.

    Average monthly revenue per paid subscriber grew slightly for Disney’s other direct-to-consumer platforms, ESPN+ and Hulu.

    The company said it now has around 159 million total subscribers across its streaming services as of the end of the second quarter. Revenue for Disney’s direct-to-consumer business grew 59% to $4 billion, which has helped offset losses in other segments affected by the pandemic.

    Disney announced it is also extending its MLB contract through 2028 and that it signed an eight-year soccer deal with LaLiga.

    Parks

    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 recorded a one-time $414 million charge during the quarter for impairments and severance for the planned closure of an animation studio and Disney-branded retail stores, and severance paid to workers at its parks and and resorts businesses.

    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.

    “We are very encouraged by the initial guest response,” McCarthy said, adding that forward-looking bookings are strong as coronavirus case counts decline and vaccines ramp up.

    Additionally, the Centers for Disease Control and Prevention said earlier Thursday fully vaccinated people no longer need to wear a face mask or stay six feet away from others in most settings, whether outdoors or indoors. Chapek pointed toward the new guidance as good news for the company, saying in the earnings call it will be a bigger catalyst for growth and attendance.

    “I think in relatively short order you’re going to see our attendance go up significantly,” Chapek later told CNBC.

    As of Thursday, Disney’s Paris-based theme park is the only location that has not reopened to the public.

    » Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision

    » Subscribe to CNBC: https://cnb.cx/SubscribeCNBC

    » Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic

    Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.

    The News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30: https://www.cnbc.com/2020/09/29/the-news-with-shepard-smith-podcast.html?__source=youtube%7Cshepsmith%7Cpodcast

    Connect with CNBC News Online

    Get the latest news: http://www.cnbc.com/

    Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC

    Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC

    Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC

    Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC

    https://www.cnbc.com/select/best-credit-cards/

    #CNBC

    #CNBCTV

    CNBC Television YouTube Channel

    Got a comment? Leave your thoughts in the comments section, below. Please note comments are moderated before publication.

    In This Story: COVID-19

    Covid-19 is the official WHO name given to the novel coronavirus which broke out in late 2019 and began to spread in the early months of 2020.

    Symptoms of coronavirus

    The main symptoms of coronavirus are:

    • a persistent new cough (non productive, dry)
    • a high temperature (e.g. head feels warm to the touch)
    • shortness of breath (if this is abnormal for the individual, or increased)

    Latest News about Covid-19

    Below are stories from around the globe related to the 2020 outbreak of novel Coronavirus – since the WHO gave the Covid-19 naming. Most recent items are posted nearest the top.

    5 Recent Items: COVID-19

  • Travel bubble with Singapore in sight | Coronavirus | 9 News Australia
  • Pfizer vaccine available at your GP | Coronavirus | 9 News Australia
  • Christian Eriksen: Denmark midfielder ‘awake’ after collapsing on pitch @BBC News live 🔴 BBC
  • Will the G7 summit lead to new ways of solving global problems?
  • Live: Guangzhou officials brief on latest COVID-19 control measures
  • In This Story: Disney

    The Walt Disney Company, DIS (NYSE), is an American diversified multinational mass media and entertainment conglomerate headquartered at the Walt Disney Studios complex in Burbank, California.

    4 Recent Items: Disney

  • Avatar: Frontiers of Pandora – Official Reveal Trailer | E3 2021
  • Cheers | Marvel Studios’ Loki | Disney+
  • Many Sides of Loki | Marvel Studios’ Loki Cast & Creators
  • Tom Hiddleston Isn’t Sure If Mephisto Will Appear In Loki | MTV Movies
  • Leave a Comment