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Closed amusement parks, stop in Hollywood, that really affects the Disney entertainment group.
American entertainment giant Walt Disney has suffered a big drop in profits due to the crown pandemic. The surplus declined more than 90 percent year-over-year to $ 460 million in the three months through the end of March, the company said Tuesday after the US stock market. USA It closed in Burbank, California.
Thanks to the boom in TV and broadcast offerings, revenue increased 21 percent to $ 18 billion. However, Disney’s amusement parks, resorts, cruises, and fan-only shops in particular suffered greatly from the pandemic: Operating profit here fell 58 percent, though the virus crisis only spread to the end of the quarter. The streaming business with the thriving new Disney + video service has grown tremendously, but has so far caused high costs. The division’s loss of $ 812 million was more than double the previous year.
However, Disney’s new chief executive Bob Chapek, who took over as longtime corporate director Bob Iger in February, tried to be optimistic. “The Covid 19 pandemic is having a significant impact on several of our businesses,” admitted the senior manager. However, Disney’s leadership is confident that it will weather the crisis well and eventually strengthen itself. The group had shown enough times that it was “exceptionally tough.”
In the last quarter, Disney’s amusement parks, which are among the company’s main pillars and sources of profit, were the main ones affected by the crown crisis. First, international attractions in Asia, for example, had to close, followed by large theme parks in the United States in mid-March. As a result, the high costs are suddenly no longer offset by any noticeable income. After all, Disneyland Shanghai is slated to reopen on May 11, but with clear restrictions. In total, Disney reduced pandemic damage to around $ 1.4 billion in the quarter.
Share under pressure
But the film division also groaned under the crisis, as people around the world stayed home, theaters had to close, and the studios had to suspend production work. The division posted eight percent less profit than the previous year, although there had been promising starts with “Frozen 2” and “Star Wars: The Rise of Skywalker” earlier in the quarter. However, the television and cable business significantly increased revenue, even as troubled sports broadcaster ESPN continues to shrink the division.
Quarterly figures were initially poorly received by investors, and stocks subsequently reacted with significant price cuts. The profit was well below market expectations, even if sales were higher than expected. Investors were particularly upset that Disney announced it would suspend semi-annual dividend payments due to the pandemic. The stock has already suffered a lot anyway: the price has dropped 30 percent since the beginning of the year.
(APA / Reuters)
