Disney Reports Quarterly Earnings Following Tough Quarter Due to Worldwide Pandemic.
As we reported yesterday, Disney released their quarterly earnings today. There were no expectations that Disney would report massive earnings with theme parks across the globe shutdown due to coronavirus. The only possible save for the company would be Disney+.
Disney reported earnings for their third fiscal quarter on Tuesday, August 4. Here is the breakdown.
- Earnings per share: 8 cents vs. loss of 64 cents expected, according to Refinitiv
- Revenue: $11.78 billion, vs $12.37 billion expected, according to Refinitiv
Each segment of the company was down with the exception of Direct-to-Consumer and International. This segment includes Disney+, ESPN+ and Hulu, all owned by Disney. Across all three streaming services Disney reports a total over 100 million paid subscribers.
- Media Networks: $6.56 billion, down 2%
- Parks, Experiences and Products: $983 million, down 85%
- Studio Entertainment: $1.74 billion, down 55%
- Direct-to-Consumer and International: $3.97 billion, up 2%
The most expected report came in terms of Parks, Experiences and Products. The company took a $3.5 billion hit to its operating income from parks being closed during the quarter.
Another expected area to be severely impacted was Studio Entertainment. With new films curbed since Mid-March, studio entertainment revenues slumped 55% to $1.7 billion.
Although the company will slowly begin to recoup losses, cruises have still not begun sailing and there is no timeline for that to startup. Disneyland remains closed and several international parks are on the cusp of closing again due to spikes in the virus. Walt Disney World is open to limited crowds.
Shares of Disney went up about 2% in after hours trading following the report. (at time of publishing)
In the third quarter, which ended on June 27, Disney brought in $11.78 billion revenue vs. analysts’ expected revenue of $12.39 billion. Disney managed to squeak by with a profit with its earnings per share at 8 cents vs. an estimated loss of 64 cents.
Several projects have been canceled or tabled as Disney attempts to stop the bleeding but make no mistake, guests are eager to get back to normal and get back to the magic whenever that is allowed to happen.
Related: Walt Disney World Project Rundown
Stay tuned for more information as it becomes available.