Disney tops quarterly profit estimates, but starts to lose Disney+ streaming subscribers
Disney posted fiscal first-quarter earnings Wednesday that beat on the top and bottom lines, but revealed the beginnings of expected streaming subscriber losses at Disney+.
The company's streaming business reported another quarter of profitability despite a 1% decline in subscribers for Disney+, the company's flagship service. While domestic subscriptions for the platform increased around 1%, international numbers declined around 2%.
Disney warned during its fiscal fourth-quarter report in November that it expected a "modest decline" in subscriptions during the December period. Disney told investors Wednesday that it expects another "modest decline" in subscribers during the second quarter.
Total paid Disney+ subscriptions stand at 124.6 million, compared with 125.3 million at the end of the company's fiscal fourth quarter.Total Hulu subscriptions rose 3% during the period to 53.6 million.
The slowdown in streaming subscriber growth follows an increase in prices for its services last year. Disney+'s average monthly revenue per paid subscriber increased roughly 4% to $7.99 due to those price hikes, the company said.
Here is what Disney reported for the period ended Dec. 28 compared with what Wall Street expected, according to LSEG
Disney's net income increased nearly 23% to $2.64 billion, or $1.40 per share, from $2.15 billion or $1.04 per share, during the same quarter last year. Adjusting for one-time items including restructuring charges and impairments related to intangible Hulu assets, Disney reported adjusted earnings of $1.76 per share.
Revenue increased 4.8% to $24.69 billion compared with $23.55 billion in the year-earlier period.
The company saw revenue gains across the board for its entertainment, sports and