Walt Disney Co. Reported Rare Loss Due To Covid-19 Pandemic
Disney lost $4.7 bn in third quarter as coronavirus closed attraction
Worldwide majority of businesses have experienced unprecedented disruption as a result of the pandemic.
On Tuesday (4th August) The Walt Disney Co. reported a fiscal third-quarter loss of nearly $4.7 billion since 2001. The Walt Disney posted revenue of $11.8 billion in the period, $870 million short of Wall Street’s expectations.
Theme park, television networks and movie studio business closures from April to June led to an operating loss of $3.5 billion and $1 billion it cost to shut them down in second half of March. Even some theme park resorts around the world have opened now but social distancing rules have limited attendance.
“Disney Chief Executive Bob Chapek told analysts. “This is a very uncertain time, most of our businesses were shut down, and this had a huge impact, we should be in a good shape once consumer confidence returns”
California-based The Burbank company has been losing millions of dollars every day since its theme parks were closed due to the pandemic in March. Its Florida theme parks reopened in July with health and safety guidelines in place, including limits on the number of visitors allowed inside. Meanwhile, most of California’s Disneyland remains closed as coronavirus cases mount in the state.
Delayed releases of long-expected films, including “Mulan” “Avatar 2,” “Star Wars,” and “Tenet,” also hurt the company’s bottom line
Covid-19 crisis helped Disney’s streaming service to gain great number of users. Further strengthen its streaming business Chapek said, “We see this as an opportunity to bring this incredible film “Mulan” to a broad. Audience currently unable to go to movie theaters, while also further enhancing the value and attractiveness of a Disney+ subscription with this great content,”. It would surpass theaters in the United States, Canada and some part of Europe and make “Mulan” a $200 million film available to Disney+ streaming service on a premium basis on September 4. The film access will cost $29.99 to download on top of Disney+ membership. Despite the huge negative impact of the COVID-19 pandemic on Disney’s results, the third quarter should be considered a success for the House of Mouse.