Disney reported mixed earnings for its fiscal third quarter of 2020 after the bell on Tuesday as it continues to feel the impact of the coronavirus pandemic on sectors like its parks business.
Disney shares initially fell on the report but later rose more than 1%.
Here are the key numbers:
- Earnings per share: 8 cents vs. loss of 64 cents expected, according to Refinitiv
- Revenue: $11.78 billion, vs $12.37 billion expected, according to Refinitiv
Disney’s direct-to-consumer and international segment was the only one that reported an increase in year-over-year revenue. Disney said it now has 100 million paid subscribers across its streaming services, which include Disney+, Hulu and ESPN+. More than half of those subscriptions are for Disney+, which now boasts 57.5 million subscribers in less than a year of service.
Here’s how Disney’s segments did in the third quarter in terms of revenue compared to the same quarter last year:
- Media Networks: $6.56 billion, down 2%
- Parks, Experiences and Products: $983 million, down 85%
- Studio Entertainment: $1.74 billion, down 55%
- Direct-to-Consumer and International: $3.97 billion, up 2%
Disney’s parks and studio entertainment segments suffered the most during the quarter as pandemic lockdowns restricted travel and production.
Disney had been able to reopen some of its parks with limited capacity and new restrictions to keep visitors safe, but its Disneyland theme park and resort in California was forced to delay its expected July reopening as the state pushed back its guidelines amid rising case numbers.
The company took a $3.5 billion hit to its operating income from parks being closed during the quarter.
Revenue for the Parks, Experiences and Products segment, which includes cruises, resorts and merchandise, fell 85% to below $1 billion during the quarter.
Disney has been unable to release a new film in theaters since mid-March, which has taken a toll on its studio business. During the quarter, studio entertainment revenues slumped 55% to $1.7 billion.
The lack of theatrical releases was partially offset by video on-demand, lower marketing costs and lower film costs.
Disney faced particularly tough comparisons this quarter, as the company released box office blockbusters “Avengers: Endgame” and “Aladdin” during the same period last year.
This story is developing. Check back for updates.
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