Disney Loses Nearly $5 Billion as Pandemic Slams Theme Parks--2nd Update
August 04 2020 - 5:48PM
Dow Jones News
By R.T. Watson
Walt Disney Co. said it lost nearly $5 billion in the quarter
ended June 27, as the majority of its business reeled amid global
efforts to curb the spread of the coronavirus by shutting down
public spaces.
Crippled by sweeping social-distancing measures, the
entertainment company swung to a loss of $4.72 billion for its
fiscal third quarter, from a year-earlier profit of $1.43 billion.
Total revenue fell 42% to $11.8 billion from $20.3 billion.
As expected, Disney's theme-parks business was hit the hardest.
The company estimated the pandemic had a roughly $3.5 billion
negative impact on the segment, resulting in a $1.96 billion loss
for the business, compared with $1.72 billion operating income a
year earlier.
The company's domestic parks, resorts, cruise lines and
Disneyland Paris were closed during the entire quarter. Disney's
Shanghai Disney Resort and Hong Kong Disneyland were able to
operate for a portion of the quarter.
Disney shares were up about 1% in after-hours trading.
The company also disclosed ways it is adapting to the pandemic's
impact, notably saying its big-budget remake of "Mulan," originally
planned to debut in theaters this summer, will now be available as
a premium-priced rental on Disney+. Starting early next month, the
movie will be available for about $30 in the U.S., Canada and
several other major markets. The company said it will open in
theaters in markets where those are open.
"We're looking at 'Mulan' as a one-off," said Disney Chief
Executive Bob Chapek, adding that he hoped releasing the movie on
its platform would attract subscribers to the streaming
service.
(END) Dow Jones Newswires
August 04, 2020 17:33 ET (21:33 GMT)
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