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.
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?