Disney financial results turned out to be better than forecasted

Disney Stock : Is DIS Stock a BUY after HUGE Disney+ Growth? Deep Dive Analysis & Valuation

Disney financial results turned out to be better than forecasted

Walt Disney Co escaped the total disaster some investors feared due to business paralyzed by the pandemic.

Disney’s quarterly earnings of 8 cents per share on an adjusted basis beat expectations for a 64-cent loss, pushing the stock up 5%.

The company incurs expenses of almost $ 5 billion. COVID-19 deprives Disney of $ 3.5 billion in operating profit due to idle branded amusement parks around the world.

«Most companies have experienced unprecedented losses as a result of the pandemic. Many of our factories were closed, and this had a huge impact on the bottom line.», – Disney CEO told analysts Bob Chapek.

The streaming service Disney +, which had 60.5 million subscribers as of August 1, has been the spotlight this quarter, Chapek said.. Streaming customer base grew by 6 million from May to July.

Disney financial results turned out to be better than forecasted

«We plan to invest even more effort and money in our content to keep this project in working order and develop it.», – he said.

Combined with Hulu and ESPN +, Disney has attracted over 100 million worldwide subscribers since launching its major streaming service nine months ago. Netflix Inc, which has gotten a head start since it started back in 2007, boasts an audience of 193 million..

The outbreak of the coronavirus forced Disney to postpone the premieres of its projects in theaters, including the long-awaited movie remake «Mulan».

Recently it became known that Disney will release «Mulan» on Disney + September 4. The cost of viewing will be $ 30.

Disney financial results turned out to be better than forecasted

Chapek noted that this is a one-time event and this does not mean that all the planned premieres will be shown in the same way..

The move follows a July deal between Comcast Corp, Universal Pictures and AMC Entertainment Holdings Inc, which will allow the studio to release films to media sources just three weeks after its in-theater premiere. Previously, the average period was three months.

Disney also said it will launch a new international streaming service under the Star brand..

«Investors look beyond a bad quarter to reopen parks, while Disney + looks forward to renewed earnings growth», – the analyst said Haris Anwar.

Theme park closures from April to June resulted in an operating loss of $ 1.96 billion in the parks and consumer goods segment. Despite the fact that four out of six themed park resorts around the world have opened, social distancing rules have limited attendance.

The company’s film studio operating profit fell 16% to $ 668 million as many cinemas remained closed.

Total revenue fell 42% to $ 11.78 billion. Analysts on average expected $ 12.37 billion in revenue, Refinitiv IBES data shows.

Similar articles

Related Posts