Closed amusement parks resulted in 10 billion less revenue – E24

Last year, Disney’s “Parks, Experiences and Products” segment was the fastest growing segment for the company’s earnings. After the Disneyland parks closed in March, there was great excitement about how this would affect revenue.

Unused season pass under the crown? You can claim this back

– The corona effect and the consequences of measures to prevent dispersion affect our segments in several ways, but most importantly for parks, experiences and products. We estimate the corona effect on operating income in this part of the business to be approximately $ 1 billion, the company writes in the report.

For the segment, operating profit fell 58 percent compared to last year.

In the quarter, revenue fell to $ 18 billion, down from $ 15 billion. It was better than expected and, according to Refinitive, the consensus was $ 17.8 billion. Earnings per share of 89 cents were expected in advance, but in the second quarter earnings per share of 60 cents ended.

NOK 51 billion decrease in profits

Operating profit was $ 475 million, down from $ 5.5 billion (NOK 51 billion) in the same quarter last year. This is a 91 percent decrease.

In the aftermarket, stocks rose for the first time, before the write period is in decline with a 1.45 percent drop. The stock ended the day down 2.05 percent when Wall Street closed.

The effects of the crown result in a decrease in revenues as a whole of USD 1.4 trillion, corresponding to NOK 14.36 trillion.

– The impact on other segments includes lower advertising revenue, a lower audience in the current quarter on live shows and a higher loss of revenue at Studio Entertainment due to the closing of theaters and stages, the report states.

In addition, recording and film and television productions have been postponed due to the pandemic, which also affects the outcome.

Increase for Disney +

At the same time, this is the second quarter report after the launch of the new Disney + streaming service, so investors have paid special attention to these figures.

Disney + increased the number of paying subscribers to 33.5 million. At the end of last year, Disney had 26.5 million paying subscribers.

In the first quarter of the fiscal year, Disney decided not to disclose the prospects for streaming service in the quarter or in the future.

During the presentation, Disney’s chief financial officer should have said that Disney + has 54.5 million subscribers and that they surpassed the milestone with 50 million subscribers in early April, according to Dow Jones Newswires.