Disney’s earnings plunge as coronavirus shutters parks and cruise ships

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Disney’s earnings dived within the second quarter, together with a 58 % drop in working incomes tied to its shuttered theme parks and cruise ships, the Mouse Home mentioned on Tuesday.

The Burbank, Calif. firm mentioned that coronavirus pandemic closures, which has additionally delayed its summer time blockbusters, have squeezed its second-quarter earnings to 60 cents a share, down from $1.60 a share within the yr earlier quarter.

Shares of Disney fell almost 2 % in after-hours buying and selling as Wall Road had been anticipating adjusted earnings of 88 cents a share, excluding objects.

The one shiny spot was elevated engagement on its newly-launched streaming service, Disney+.

Calling the challenges linked to the virus “unprecedented,” government chairman Bob Iger, who stepped down as CEO in February solely to renew a lead position in April, acknowledged that the pandemic “hit us laborious” and advocated for a “all hands-on-deck strategy.”

The corporate closed its theme parks globally, together with Disneyland and Disney World, in mid-March, and mentioned these closures took a $1 billion toll on working earnings in its parks, experiences and merchandise unit.

The corporate reported a 58 % drop in working earnings for the phase this quarter in comparison with the identical interval final yr. Throughout all divisions, the virus shaved $1.four billion off its earnings.

Newly-minted CEO Bob Chapek didn’t supply a lot steering on when the parks would reopen, however mentioned the corporate is mulling social distancing pointers for when the parks do resume enterprise.

“Whereas the COVID-19 pandemic has had an considerable monetary impression on numerous our companies, we’re assured in our means to resist this disruption and emerge from it in a robust place,” Chapek mentioned.

Income rose 20.7 % to $18.01 billion for the quarter ended March 28, above Wall Road’s expectations for gross sales of $17.81 billion.


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