Disney beats earnings expectations but does not update Disney+ guidance

Disney shares slid 1% after the company reported fiscal first-quarter earnings on Tuesday. The company beat on both the top and bottom lines for the quarter. 

Here are the key numbers: 

• Earnings per share: $1.53 per share vs. $1.44 per share expected, according to analysts surveyed by Refinitiv
• Revenue: $20.86 billion vs. $20.79 billion expected, per Refinitiv

The results mark Disney’s first earnings report since the launch of its new streaming service, Disney+, last November. In the earnings release, Disney CEO Bob Iger said the service has “exceeded even our greatest expectations.” 

Disney+ now has 26.5 million subscribers, which is up from the 10 million sign-ups it registered for the service after it launched November 12. Disney said the average monthly revenue per paid Disney user was $5.56.

However, it’s not clear how many, if any, of those subscribers were added through free trials with Verizon and other partners. Disney defines a paid subscriber as “a subscriber for which we recognized subscription revenue.” Customers who got Disney+ through free trials may not re-subscribe once the trial is up.

ESPN+ now counts 6.6 million subscribers and Hulu has 30.4 million total subscribers. Hulu reported average monthly revenue per paid subscriber of $59.47 during the quarter. Meanwhile, ESPN+ reported average monthly revenue per paid subscriber of $4.44, which was a 5% decline from the year ago period. Disney blamed the decline on a “shift in the mix of subscribers to our bundled offering.” 

Revenue for Disney’s Parks, Experience and Products segment grew 8% year over year to $7.4 billion during the quarter, while operating income increased 9% to $2.3 billion. The company said operating income growth was partially offset by lower results at its international parks and resorts. 

This story is developing. Check back for updates.