By Yasin Ebrahim
Investing.com - Walt Disney reported Wednesday fiscal fourth-quarter results that missed expectations on both the top and bottom lines as Disney+ subscriber growth fell short of expectations.
Walt Disney (NYSE:DIS) lost 2.88% in after-hours trading following the report.
Walt Disney announced earnings per share of 37 cents on revenue of $18.53 billion. Analysts polled by Investing.com anticipated EPS of 51 cents on revenue of $18.82 billion.
The direct-to-consumer segment reported higher operating losses, owing to "higher losses at Disney+, and to a lesser extent, ESPN+, partially offset by improved results at Hulu," the company said.
Disney+, its streaming business, reported new subscriber adds of 118.1 million for the quarter, missing expectations of 124.5 million, and average monthly revenue per subscriber fell 9% to $4.12.
Subscriber growth was hurt by "significant disruptions in the production and availability of content, including the delay of key live sports programming during fiscal 2020 and fiscal 2021, as well as the suspension of most film and television production in March 2020," Disney said.
"Although film and television production generally resumed beginning in the fourth quarter of fiscal 2020, we continue to see disruption of production activities depending on local circumstances," it added.
Disney’s parks, experiences and products business saw revenue jump 99%, to $5.5 billion, from the same period last year.
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