With the company’s theme parks still struggling financially and Disney+ streaming service subscriptions falling short of projections, the Walt Disney Co. Thursday reported lower-than-anticipated second-quarter revenue.
Wall Street analysts had anticipated Disney+ subscriptions to reach the 109 million mark, but the number came in at 103.6 million. The company reported $15.6 billion in revenue, just shy of the anticipated $15.85 billion.
The company reported adjusted earnings per share of 79 cents.
Disney CEO Bob Chapek still struck an upbeat tone.
“We’re pleased to see more encouraging signs of recovery across our businesses, and we remain focused on ramping up our operations while also fueling long-term growth for the company,” Chapek said in a statement. “This is clearly reflected in the reopening of our theme parks and resorts, increased production at our studios, the continued success of our streaming services and the expansion of our unrivaled portfolio of multiyear sports rights deals for ESPN and ESPN+.”
Despite the leveling off in subscriptions to Disney+, the company reported a 59% jump in direct-to-consumer revenues, which reached $4 billion. The direct-to-consumer business is still running at a loss, but the deficit shrank from $0.8 billion to $0.3 billion.
The company reported 13.8 million subscribers to its ESPN+ service and 41.6 million subscribers to its Hulu offerings, up 30% from a year ago.