Walt Disney Co (DIS) reported second-quarter earnings after the market close Thursday.

What Happened

Disney's revenue in the quarter was $15.6 billion, a year-over-year decline of 13%. The revenue figure came in lower than estimates of $15.9 billion.

The company reported adjusted earnings per share of 79 cents in the second quarter, up from 60 cents in the prior year’s second quarter.

Revenue in the Media & Entertainment segment was $12.4 billion, up 1% year-over-year. Parks, Experiences and Product segment revenue of $3.2 billion was down 44% year-over-year.

Related Link: Disney's Stock Needs The Magic of Volume: A Technical Look Ahead Of Earnings 

Disney Streaming Growth

The big highlight of the quarterly report could be the direct-to-consumer media segment that had revenue of $4 billion, up 59% year-over-year.

The DTC segment posted an operating loss of $0.3 billion, an improvement from a loss of $0.8 billion in last year’s same period.

Improvements at Hulu with stronger subscriber revenue growth and advertising sales and growth for ESPN+ were highlighted in the report.

Disney+ ended the second quarter with 103.6 million subscribers. The company had 94.9 million subscribers at the end of the first quarter.

The worrying number may be the average revenue per user for Disney+ fell to $3.99 in the second quarter, down 29% year-over-year. The decline came from the new Disney+Hotstar bundle for international customers that lowered the cost basis.

DIS Price Action

Shares of Disney are down 3.5% to $171.99 in after-hours trading Thursday.