Walt Disney Co (NYSE:DIS) stock plunges 12.10% (As on November 9, 12:06:33 AM UTC-4, Source: Google Finance) after the company posted lower than expected profit and revenue for the fourth quarter of FY 22. Disney has amassed a total of 235 million subscriptions across Disney+, Hulu and ESPN+ streaming services, a gain of 14.6 million from the previous quarter. Hulu reported 47.2 million subscribers, up 8% from a year ago, and ESPN+ logged 24.3 million, a gain of 42% from a year earlier, and Disney+ is up 39% from a year ago. Disney theme parks posted robust growth despite COVID-19 related travel restrictions in China, and Hurricane Ian forcing the temporary closure of Walt Disney World in Florida in September. Disney’s parks, experiences and products group reported revenue of $7.4 billion in the quarter, beating analysts’ forecasts. Operating income reached $1.5 billion, more than double a year ago. Disney’s net income from continuing operations rose 1% to $162 million. Linear Networks revenues for the quarter decreased 5% to $6.3 billion, and operating income increased 6% to $1.7 billion. Domestic Channels revenues for the quarter decreased 2% to $5.3 billion, and operating income increased 6% to $1.5 billion. International Channels revenues for the quarter decreased 18% to $1.1 billion and operating income decreased 18% to $0.1 billion.

Disney is spending billions to compete with Netflix Inc. and others with its streaming options. Disney+ reported 164.2 million subscribers in the fiscal fourth quarter, surpassing Factset estimates of 161 million. The cost to build Disney’s streaming business led to a $1.5 billion loss in the direct-to-consumer unit, which hurt quarterly earnings. Direct-to-Consumer revenues for the quarter increased 8% to $4.9 billion and operating loss increased $0.8 billion to $1.5 billion. The increase in operating loss was due to a higher loss at Disney+ and a decrease in results at Hulu, partially offset by improved results at ESPN+.

DIS in the fourth quarter of FY 22 has reported the adjusted earnings per share of 30 cents, missing the analysts’ estimates for the adjusted earnings per share of 56 cents, according to FactSet. The company had reported the adjusted revenue growth of 9 percent to $20.15 billion in the fourth quarter of FY 22, missing the analysts’ estimates for revenue of $21.25 billion.

The ad-supported version of the Disney+ service will launch in the United States on December 8, bringing a new source of revenue to underwrite the billions the company spends creating original movies and series for the services.