Disney Company suffered losses due to the COVID-19 pandemic

American The Walt Disney Company, the world’s largest entertainment company, suffered significant losses due to the COVID-19 coronavirus pandemic. This is stated in the company’s financial report, according to the Washington Post.

So, Disney ended the fourth quarter and the entire fiscal year 2020 at a loss (ended October 3).

Due to the coronavirus, the company’s operating profit fell by 45% over the year to 8 8.1 billion, and in the fourth quarter – by a whopping 82% (to 6 600 million).

Excluding taxes, the company lost.710 million in the fourth quarter, which covered the period from July to October 3 (or 39 cents per share), compared with net income of 7 777 million (or 43 cents per share), which was received for the same period last year.

Overall, Disney’s losses for fiscal year 2020 totaled.2.832 billion (1 1.57 per share).

Revenue in the fourth quarter fell 23% to 1 14.707 billion (compared to.19.118 billion in the same period last year). Revenue for 2020 decreased by 6%.

Revenue from the theme parks and cruise ship division, which produces consumer goods, fell 61% (to 2 2.58 billion) in the fourth quarter and 37% (to.16.5 billion) in the fiscal year.

The company estimated the negative impact of the COVID-19 coronavirus on the operating profit of this segment at approximately.2.4 billion (for the last quarter) and. 6.9 billion (for the fiscal year).

The losses are related to the closure of theme parks due to the spread of COVID-19, the suspension of excursions, as well as the closure of retail stores.

For example, the California authorities have not yet allowed the local Disneyland to resume its work. Walt Disney World in Florida is open, but according to executives, “business is moving slower than expected.”

In addition, Disney’s losses are related to the postponement of a number of film premieres due to the pandemic (the company was forced to postpone them to 2021).

At the same time, revenue from the company’s media division (including National Geographic and ESPN networks) increased by 11% in the fourth quarter to досягли 7.213 billion.

The number of subscribers to the Disney+ streaming service increased (at the end of the fiscal fourth quarter, it exceeded 73 million people).

The online TV development division increased revenue by 11%.

It is worth noting that revenue for the last quarter was better than analysts ‘ forecasts. This caused an increase in the company’s stock prices by more than 3% in trading on Thursday.