Disney Loses Nearly $5 Billion as Pandemic Slams Theme Parks--Update

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 segments reeled amid global efforts to curb the spread of the coronavirus by shutting down public spaces.

Crippled by sweeping social-distancing measures, Disney's earnings fell drastically during the company's third fiscal quarter as it lost $4.72 billion, versus a profit of $1.43 billion in the year-earlier period. Total revenue fell by 42% to $11.8 billion from $20.3 billion in 2019.

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, which it said lost $1.96 billion in the quarter, compared with $1.72 billion operating income a year earlier.

The company's domestic parks, resorts, cruise lines and Disneyland Paris were all 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.

(END) Dow Jones Newswires

August 04, 2020 16:57 ET (20:57 GMT)

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