Disney Suffers Tough Quarterly Earnings Due to Theme Park Closures

Disney Suffers Tough Quarterly Earnings Due to Theme Park Closures
The Walt Disney Company was brutalized by the coronavirus pandemic, which shuttered its parks and delayed the release of its films, setbacks that nearly sliced its revenues in half during its most recent fiscal quarter. And yet the big takeaway will not be the lackluster results, but the company’s bold decision to upend the way it will premiere “Mulan.” By announcing that it will debut the film on Disney Plus, the company shifted the attention away from its earnings and toward its streaming service at a time when that has been the rare bright spot for Disney.

Aside from that flurry of excitement, the numbers were sobering and demonstrated once again the financial carnage wrought by Covid-19. Revenues fell 40% to $11.7 billion, while diluted earnings per share for the quarter decreased 94% to 8 cents, falling from $1.34 in the prior-year period. Those revenues missed expectations, even if the adjusted profit was a pleasant surprise for investors.
See full article at Variety »

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