Walt Disney (NYSE:DIS) surpassed analysts’ expectations with its fiscal fourth-quarter earnings, bolstered by the performance of its direct-to-consumer segment, including Disney+, which attracted more subscribers and significantly reduced losses. Following the release, Walt Disney saw its shares increase by 4% in pre-market today.
The entertainment giant posted an adjusted earnings per share (EPS) of $0.82 against revenues of $21.24 billion, while Wall Street analysts had forecasted an EPS of $0.71 on revenues of $21.37 billion.
The direct-to-consumer division, encompassing the Disney+ core service, Disney+ Hotstar, Hulu, and ESPN+ streaming platforms, saw a considerable decrease in operating losses to $420 million in the fourth quarter, down from $1.41 billion the previous year.
Disney’s flagship streaming service, Disney+, added approximately 7 million new core subscribers in the quarter, bringing the total count to 150.2 million. The average monthly revenue per domestic subscriber climbed to $7.50, up from $7.31, which was attributed to increased advertising revenue.
ESPN experienced a profitable quarter with a 16% profit increase compared to the same period last year, thanks to higher revenue generation and decreased costs.