[ad_1]
Disney (DIS-US) announced Tuesday night (5th) that earnings in the second quarter of 2020 were lower than expected and fell more than 2% after business hours. The New Crown Virus pandemic (COVID-19) disrupted Disneyland’s business and cruises, but increased the share of the Disney + streaming service.
Key earnings vs. data wall street expectations
- EPS (excluding one-off items): 60 cents vs. 89 cents (refined consensus expectation)
- Revenue: $ 18.01 billion vs. $ 17.8 billion (Refinitiv consensus expectation)
- Total operating profit: 37% annual decrease to US $ 2.42 billion (US $ 3.82 billion in the same period last year)
However, due to the impact of the COVID-19 pandemic on the global economy, it is difficult to compare Disney’s actual financial data with analyst estimates.
Disney CEO Bob Chapek made a conference call for the first time. Former CEO Bob Iger announced his change to CEO in February, and will focus on creative projects. Bob Iger did the opening conversation during the conference call, but most of the question-and-answer time was absent. Iger was reportedly called in to handle daily operations due to the accelerated expansion of housing restrictions across the United States.
Treasurer Christine McCarthy said in a conference call that Disney will suspend dividends in the first half of the fiscal year and save $ 1.6 billion in cash (assuming 88 cents a share), but it can better cope with the impact of the new crown, Disney 6 The dividend will be reevaluated after months.
Disney Group Q4 Performance
Media Network Group
- Revenue increased 28% year-over-year to $ 7.257 billion
- Operating profit of $ 2,375 billion
Amusement park, experience and product group
- Revenue decreased 10% annually to $ 5.543 billion
- Operating profit of $ 639 million
Film entertainment group
- Revenue increased 18% yoy to $ 2,539 million
- Operating profit $ 466 million
Direct sale to consumers
- Revenue increased more than 100% annually to $ 4.123 billion
- Negative operating income $ 812 million
The impact of the new crown epidemic was felt most at Disneyland, the Department of Experience and Product. Disney estimated that this department’s operating profit fell by 58% compared to the same period last year. Operating profit lost about $ 1 billion due to the epidemic. Most of the revenue was lost due to the closure of operations.
During the conference call, Chapek discussed new operating procedures after the park’s reopening, including health precautions, such as limiting the number of people entering the park, implementing density control, measuring body temperature, and wearing masks.
Chapek said the company is seeing signs of China’s gradual return to normal, which is exciting, and Shanghai Disneyland will reopen in stages on May 11. The park generally has 80,000 daily visitors, but due to local government restrictions it can only operate at 30% of its capacity, compared to 24,000. Chapek said the park’s initial opening operation will be below this capacity limit and will rise to the 30% limit in the coming weeks.
McCarthy confirmed in the conference call that about 100,000 Disney employees take vacations without pay.
Disney’s “direct sales to consumers” business sees a bright spot. The company announced that as of March 28, Disney + paid subscribers reached 33.5 million. Before the beginning of April, the company had exceeded 50 million subscriptions due to the implementation of anti-epidemic measures in the home, leading to the number of subscribers to broadcast media. Up to 54.5 million people have subscribed.
The company continued to promote Disney + internationally, but despite Disney +’s tremendous growth, Disney executives still declined to provide financial estimates and did not respond when the business would be profitable.
As of March 28, the total number of Disney Hulu subscribers increased by 27% yoy to 32.1 million.
Due to the lack of live broadcasts of sporting events, Disney’s ESPN advertising revenue decreased approximately 8% annually, but McCarthy said there are positive signs that “audience demand for sporting events has been suppressed” because the The draft of the National Football League (NFL) has been in the last three days. The audience reached 55 million people, the highest number of viewers in history, and even the documentary “The Last Dance” set a record.
Sports events were postponed indefinitely due to the epidemic, but how to deal with the cash fees Disney has paid to broadcast these events, McCarthy declined to comment, saying only that “Disney is working closely with partners like the Alliance.” .
[ad_2]
