Disney reported lower-than-expected profits in its fiscal fourth quarter, causing its stock price to plummet.
The company reported this Thursday a profit of USD 22.5 billion (approximately R$ 118.9 billion), which corresponds to a decrease of -0.5%. It was expected to cost US$22.8 billion (R$120.5 billion). This is, in part, due to the poor performance of the studio’s recent films.
As a result, the company’s shares fell more than 4% in pre-opening trading on Wall Street. Revenues from the group’s film and television production division fell 26% year-on-year, with a loss of US$52 million (R274.9 million).
The comedy “The Roses: Till Death Do Us Part” did particularly poorly at the box office. Superhero movie “Fantastic Four: The Primer” did relatively well, but it fell far short of the hits “Deadpool & Wolverine” and “Inside Head 2,” which propelled Disney into the same period last year.
Streaming business grew 8%, driven by a 17% increase in subscribers for the Hulu platform, which recently entered Brazil.
In its fiscal fourth quarter, which ended in September, Disney’s streaming revenue increased 39%. The company’s overall net profit reached US$1.44 billion (R$7.61 billion), more than double the previous year’s figure.
Earnings per share amounted to US$1.11 (R$5.86), beating analysts’ expectations of US$1.07 (R$5.65).
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