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Investing.com – Disney (NYSE:DIS) shares fell nearly 5% Friday on disappointing growth in its streaming subscriber base and weaker than expected revenue despite beating profit expectations.
Investors had also hoped for stronger guidance by the company on the outlook for movie ticket sales and theme parks, and that weighed on the sentiment.
The streaming operation Disney+ now has 103.6 million subscribers while the total number of users on its platform is 159 million. The growth in that user base was more than 200% from a year ago, but analysts wanted more as the entertainment giant slugs it out with Netflix (NASDAQ:NFLX) in the streaming space. Average revenue per Disney+ user fell 29%, declining to $3.99 from $5.63.
Netflix too has had to suffer the market’s wrath on slowing growth in its user base.
Disney said revenue fell 13% from a year ago, to $15.61 billion in the quarter. Adjusted profit of 79 cents a share beat the expectation for 27 cents.