Walt Disney stock (NYSE:DIS) dipped 2.3% in early after-hours action following a fiscal second-quarter earnings report where revenues came roughly in line with expectations and net income just short, while the company also reported improvement in its streaming losses despite another subscriber decline.
Disney+ subscribers fell for the second straight quarter -- this time to 157.8M from 161.8M, a 2% drop quarter-over-quarter. ESPN+ and Hulu subscribers ticked up, though (to 25.3M and 48.2M respectively), and average revenue per user gained across Disney+ (to $4.44 from $3.93) and ESPN+ (to $5.64 from $5.53).
Hulu's subscription-video tier saw ARPU drop to $11.73 from $12.46, while its Hulu + Live TV offering ARPU rose to $92.32 from $87.90.
Disney revenues overall grew 13% to $21.82B, roughly in line with expectations, and paced by another double-digit gain in the Parks unit, still pulling off an impressive rebound from the depths of the COVID-19 pandemic. Revenues grew more slowly in the entertainment wing, and profits there fell sharply amid continuing heavy investment in streaming.
“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,” CEO Bob Iger said in response.
Income from continuing operations jumped 93% to $2.12B, and net income from continuing operations jumped sharply to $1.27B from a year-ago $470M.
Revenue by segment: Disney Media and Entertainment Distribution, $14.04B (up 3%); Disney Parks, Experiences and Products, $7.78B (up 17%).
Operating income by segment: Disney Media and Entertainment Distribution, $1.12B (down 42%); Disney Parks, Experiences and Products, $2.17B (up 23%).