Walt Disney Co. shares fell as much as 5.3% in extended trading after the entertainment giant reported new subscriptions to its streaming service that fell short of Wall Street forecasts.
The company said Thursday it closed the quarter with 103.6 million Disney+ customers, shy of the 110.3 million projected in the Bloomberg Consensus. Average revenue per subscriber fell 29% to $3.99 a month due to the launch of a less-expensive service in India.
Subscriptions to the streaming business had been the biggest driver of the stock for the last two years. But the shares were down slightly this year as investors weighed progress in that effort against the loss of moviegoing and the closing of theme parks to the coronavirus.
Earnings excluding some items rose to 79 cents a share, exceeding the 32 cents that analysts were projecting on average. Sales fell to $15.6 billion, missing estimates of $15.9 billion for the period ended April 3.