by winston » Wed Nov 09, 2022 8:18 am
not vested
Disney fell short of expectations for profit and key revenue segments during the fiscal fourth quarter Tuesday and warned strong streaming growth for its Disney+ platform may taper going forward.
The company’s quarterly results missed Wall Street expectations on the top and bottom lines, as both its parks and media divisions underperformed estimates.
And Chief Financial Officer Christine McCarthy tempered investor expectations for the new fiscal year, forecasting annual revenue growth of less than 10%.
The company reported fiscal 2022 revenue growth of 22%.
Revenue in Disney’s media and entertainment division fell 3% year over year to $12.7 billion during the fiscal fourth quarter, as the company’s direct-to-consumer and theatrical businesses struggled. Analysts had expected segment revenue of $13.9 billion.
The company also posted lower content sales because it had fewer theatrical films on the calendar and therefore, fewer films to place into the home entertainment market.
Disney+ added 12.1 million subscriptions during the period, bringing the platform’s total subscriber base to 164.2 million, higher than the 160.45 million analysts had forecast, however growth is expected to slow in the fiscal first quarter, Disney executives warned on Tuesday’s conference call.
Disney CEO Bob Chapek also said in the earnings release that Disney+ will achieve profitability in fiscal 2024.
The direct-to-consumer division lost $1.47 billion during the most recent quarter. It also reported a 10% drop in domestic average revenue per user (ARPU) to $6.10.
The company is set to hike prices for the service in December and is planning an ad-supported tier, which is expected to boost revenue.
The company reported record results in its parks, experiences and products segment, Chapek said.
The division, which includes the company’s theme parks, resorts, cruise line and merchandise business, saw revenue increase more than 34% to $7.4 billion during the quarter.
Still, Wall Street had slightly higher hopes for the division: Analysts were expecting parks revenue of $7.5 billion.
Source: Phillips
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
