The Walt Disney Company’s third-quarter runs from April through June, and today the company announced financial results.
A little context on what happened during this period:
- Disney Cruise Line was closed for all of the quarter
- Disneyland Paris was closed for all of the quarter
- Walt Disney World parks were closed for all of the quarter
- Disneyland was closed for all of the quarter
- Shanghai Disney re-opened in May
- Hong Kong Disneyland reopened in late June, but then closed again in July
- Disney Springs at Walt Disney World reopened in mid-May
- Several Disney Vacation Club Resorts reopened in June
The Parks, Experiences, and Products segment of the business lost $2.0 billion in the quarter. Revenue decreased by 85% to $1.0 billion. Decreases in both domestic and international parks lead to the decreases. Merchandising and retail decreases also contributed to the loss, but to a lesser extent.
Overall Results
The company’s third-quarter revenue was $11.78 billion, which was 41.8% lower than last year. Disney believes that the Coronavirus caused the overall company to use $2.9 billion.
Good Streaming News
Disney did have some good news to share. Disney+ continues to grow. The number of subscribers increased to 57.75 million, which is up from 33.5 million in the second quarter. A bit surprisingly, given the lack of sports due to shutdowns, is that ESPN+ subscribers increased to 8.5 million, up from 7.9 million in the second quarter.
Surprised to learn that Disney Parks lost $2 billion last quarter?