Disney profit plunges by more than half after theme parks close

Lawrence Kim
May 6, 2020

Details: The company says that in total it lost approximately $1 billion, primarily due to revenue deficits that are attributable to the pandemic.

Newly-minted CEO Bob Chapek didn't offer much guidance on when the parks would reopen, but said the company is mulling social distancing guidelines for when the parks do resume business. Plus, Disney's ESPN sports network was left with no major live sports to broadcast.

The Burbank, Calif. company said that coronavirus pandemic closures, which has also delayed its summer blockbusters, have squeezed its second-quarter earnings to 60 cents a share, down from $1.60 a share in the year earlier quarter.

Shares of Disney fell 2 per cent in after-hours trade to US$98.68, after losing 2 per cent during the regular session.

During the Walt Disney Companies quarterly investors call, it was announced that as of May 4th, Disney+ now has 54.5 million subscribers globally.

Disney's stock hit at an all-time high before the pandemic.

It has taken steps to reduce costs, including putting 120,000 employees on furlough, according a filing with securities regulators.

One area gaining as audiences shelter at home is Disney+, the streaming service the company launched in November.

One bright spot was its Disney Plus streaming service, which contributed to an nearly $3 billion revenue increase for direct-to-consumer and global business. The division lost US$812 million in the just-ended quarter, less than the analyst forecast of US$861 million. Still, Disney says operating income from its parks division was down 58% from this time previous year. Overall revenue rose 21 percent to $18.01 billion, just short of the $18.06 billion analysts expected.

Other reports by Click Lancashire

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