Thursday November 11, 2021
Disappointing numbers
Disney’s streaming service is poor
Walt Disney falls short of analysts’ expectations in the fourth fiscal quarter. This doesn’t just apply to sales. The number of new subscribers to the streaming service is particularly disappointing.
The US entertainment giant Walt Disney did worse than expected in the most recent fiscal quarter – especially in the important streaming business. In the three months to the beginning of October, revenues grew by 26 percent compared to the previous year’s period, which was heavily burdened by the corona pandemic, to 18.5 billion dollars (16.1 billion euros), as the group announced on Wednesday after the US market closed. Experts had expected revenues of $ 18.79 billion.
The share initially reacted after the trading hours with significant price drops of five percent. Disney’s quarterly profit was also relatively modest with a bottom line of $ 159 million. A year ago, the balance sheet showed a loss of 710 million dollars, but now Disney’s amusement parks and holiday complexes, which have been closed due to the pandemic, are back in operation.
The streaming business for the Disney + video service was a particular disappointment for investors. In view of the lack of film and series hits, only 2.1 million subscriptions were added – FactSet forecasts had predicted over ten million. Disney boss Bob Chapek had already warned of low-single-digit growth in September.