Disney’s quarterly profit fell 91% due to the closure of parks due to the coronavirus

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The entertainment and media giant The Walt Disney Company obtained an attributable net profit of 460 million dollars (424 million euros) between the months of January and March, the multinational’s second fiscal quarter, representing a collapse of the 91.5% compared to its result for the same period of the previous year as a consequence of the impact of the pandemic on its activity.

The income of the multinational Mickey Mouse reached 18,009 million dollars (16,605 million euros), 20.7% more than a year earlier, driven by the 27.7% increase in the turnover of the television channel business , which amounted to 7,257 million dollars (6,691 million euros).

However, Disney’s park business recorded a 10.2% drop in revenue, to $ 5,543 million (€ 5,111 million), after the Covid-19 pandemic forced the closure of Disney parks. the company’s leisure, as well as the cruise business, with an estimated adverse impact of about $ 1 billion (922 million euros) from the pandemic.

For its part, Disney’s film studios division increased its revenue by 18%, to $ 2,539 million (2,341 million euros), while the area that groups Disney’s streaming businesses increased its revenue by 260%, to 4,123 million dollars (3,862 million euros).

In this sense, the company indicated that at the close of its second fiscal quarter on March 28, Disney + had 33.5 million subscribers, although the company later reported that this figure reached 50.4 million in May.

In the first six months of its fiscal year, Disney registered an attributed net profit of 2,567 million dollars (2,367 million euros), 68.8% less than in the same period of the previous year, while the billing of the multinational it grew by 28.6% to 38,867 million dollars (35,837 million euros).

On the other hand, the board of directors of the US company announced that the semi-annual dividend will not be paid as a consequence of the serious disturbances caused by the Covid-19 pandemic. The multinational calculates that the cancellation of the semiannual dividend will allow to preserve some 1,600 million dollars (1,475 million euros).

“While the Covid-19 pandemic has had an appreciable financial impact on several of our businesses, we are confident in our ability to endure this situation and emerge from it in a strong position,” said Bob Chapek, CEO of The Walt Disney Company .



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