(CercleFinance.com) – Disney opened lower on Thursday morning on the New York Stock Exchange after posting earnings below expectations for its second quarter, which ended in early April.
The U.S. entertainment giant on Wednesday reported net income of $470 million for the first three months of the year, or 26 cents per share, from $912 million, or 50 cents per share, a year earlier. early.
Excluding exceptional items, its earnings per share amounted to $1.08 per share, below the consensus which aimed for EPS of $1.19.
Turnover increased by 23% to 19.2 billion dollars, also missing the consensus which was expecting just over 20 billion.
In its press release, Disney explains that its quarterly revenues have been cut by a billing of one billion dollars due to the early termination of a contract relating to the distribution by a client of its films and series, Disney now favoring its own content platform.
An exclusivity strategy that seems to be paying off, since the Disney+ video-on-demand service attracted 7.9 million new subscribers during the quarter, where analysts were only expecting five million.
The DTC subsidiary, which includes the Disney+ and ESPN+ streaming services, saw its turnover increase by 23% to 4.9 billion dollars, but its operating loss increased from 600 to 900 million dollars.
The theme parks division has returned to profit, with an operating profit of $1.7 billion against a loss of $406 million a year earlier.
Disney shares, down more than 32% this year, fell 3.2% Thursday in trading on Wall Street.
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