Disney has just released its earnings report ahead of the quarter 3 2020 financial earnings webcast and it is as we expected, a loss for the company as a result of the pandemic.
We predicted as much yesterday but it seems the actual figures go above what initial reports expected.
“In total, we estimate the net adverse impact of COVID-19 on our current quarter segment operating income across all of our businesses was approximately $2.9 billion, inclusive of the impact at Parks, Experiences and Products,” Disney reported on Tuesday.
Here is a quote directly from the report:
The Walt Disney Company today reported earnings for its third fiscal quarter ended June 27, 2020. Diluted earnings per share (EPS) from continuing operations for the quarter was a loss of $2.61 compared to income of $0.79 in the prior-year quarter. Excluding certain items affecting comparability(1), diluted EPS for the quarter decreased 94% to $0.08 from $1.34 in the prior-year quarter. EPS from continuing operations for the nine months ended June 27, 2020 was a loss of $1.17 compared to income of $5.97 in the prior-year period. Excluding certain items affecting comparability(1), EPS for the nine months decreased 53% to $2.22 from $4.74 in the prior-year period. Results in the quarter and nine months ended June 27, 2020 were adversely impacted by the novel coronavirus (COVID-19). The most significant impact was at the Parks, Experiences and Products segment as most of our theme parks and resorts were closed for the entire quarter and our cruise ship sailings were suspended.
Disney CEO Bob Chapek had this to say on the earnings report:
“Despite the ongoing challenges of the pandemic, we’ve continued to build on the incredible success of Disney+ as we grow our global direct-to-consumer businesses. The global reach of our full portfolio of direct-to-consumer services now exceeds an astounding 100 million paid subscriptions — a significant milestone and a reaffirmation of our DTC strategy, which we view as key to the future growth of our company.”
It isn’t a surprise at all to see losses at this time, theme parks have only just started opening up for the Walt Disney Company around the world and we still have Disneyland to reopen with no date in sight at this stage.
Despite the losses, Disney seems to have managed this very well, the share price is looking pretty positive at the minute so it seems that the company is beating expectations despite the impact of the pandemic:
— Scott Gustin (@ScottGustin) August 4, 2020
There’s lots to look forward to in the future of Disney with new shows coming to Disney+, new areas of the theme parks opening up and the celebrations next year of the 50th anniversary of Walt Disney World!
What are your thoughts on these losses, do you think Disney will be quick to bounce back now that the theme parks are reopening and movie theaters are beginning to reopen around the world? Let us know in the comments below!