Walt Disney Co. (NYSE:DIS) posted quarterly revenue slightly ahead of market expectations helped by the success of its new streaming service Disney+.
Since the launch in November, 26.5mln subscribers signed up at an average revenue per head of US$5.56.
READ: Disney+ streaming service exceeds expectations with 10mln sign-ups
Revenue for the quarter to 28 December jumped 36% to US$20.8bn, with operating income up 9% to US$4bn.
Higher film and television production spending pushed free cash flow down 68% to US$292mln.
Sophie Lund-Yates, an analyst at Hargreaves Lansdown, said Disney has captured viewers with its streaming platform but long-term prospects remain foggy.
“Competition in the space should not be ignored, digital native Netflix will not take the fight lying down, but it is too early to tell how the dynamics will play out in this rapidly changing market,” she commented.
Shares were flat at US$144.14 in after-hours trading.