Disney Estimates $1.4 Billion COVID-19 Impact As Earnings Drop
It was a drop that was expected as few companies have been harder hit by the public health crisis that’s ground travel to a halt and shuttered movie theaters, postponed live events, and upended consumer behaviors.
Published: Tuesday,May 05, 2020 21:14 PM GMT-06:00
If you wondered the impact of COVID-19 will affect the biggest billion dollar companies, it has.
Earnings at the high-flying Walt Disney Company fell sharply during its most recent quarter, brought low by the gravitational force of the coronavirus pandemic.
Earnings topped out at 60 cents a share, a 63% tumble from the prior-year period. It was a drop that was expected as few companies have been harder hit by the public health crisis that’s ground travel to a halt and shuttered movie theaters, postponed live events, and upended consumer behaviors. That’s been devastating for Disney’s highly profitable theme parks. The company estimated that COVID-19’s impact had resulted in approximately $1 billion lost in its parks, experiences, and consumer products business, and $1.4 billion in losses across all of its operations.
Revenues at the company did climb 21% to $18.01 billion, but that has largely to do with difficult year-over-year comparisons. Disney was a much smaller company when it last tabulated its first quarter earnings — its $71 billion acquisition of much of 21st Century Fox didn’t close until late March.
What do you think about the same? Leave in your comments below
Comments (0)