(CNBC) Disney shares closed down 4.1% on Tuesday after CEO Bob Chapek said the company will add “low single-digit millions” of subscribers in the fourth quarter.
Chapek expects the fresh outbreaks of coronavirus to cause some headwinds to the company. He cites Covid-related production delays and suspension of streaming service in the downgraded projection.
The CEO says global production disruptions will be “very short term,” but expects little new programming in the fourth quarter that will lead to low subscriber growth.
Chapek still warned of uncertainties in quarter-to-quarter growth, although he is optimistic of long-term outlook.
Disney projected 230 million to 260 million subscribers by 2020. The company had 116 million subscribers in August.
DIS: NYSE is up +1.07% on premarket.
