Disney Reports Q3 Loss

With its parks largely shuttered and movie theaters closed due to COVID-19, The Walt Disney Company reported a third-quarter loss of $4.7 billion on revenues that were down 42 percent to $11.8 billion.

The parks, experiences and products segment was hardest hit due to the pandemic, as revenues plummeted by 85 percent to $983 million. The division posted a $2 billion loss for the period.

Studio entertainment saw revenues drop 55 percent to $1.7 billion, with operating income down 16 percent to $668 million. The decrease in theatrical distribution revenues was partially offset by growth from TV/SVOD distribution.

Media networks fared better, with revenues slipping by just 2 percent to $6.6 billion and operating income rising by 48 percent to $3.1 billion. Cable network revenues were down 10 percent to $4 billion but operating income increased 50 percent to $2.5 billion.

Broadcasting revenues rose by 12 percent to $2.5 billion and operating income rose 55 percent to $477 million.

The direct-to-consumer and international segment delivered revenues that were 2 percent higher at $4 billion, with a wider operating loss of $706 million. Disney+ ended the quarter with 57.5 million paid subs, with ESPN+ at 8.5 million and Hulu at 35.5 million.

“Despite the ongoing challenges of the pandemic, we’ve continued to build on the incredible success of Disney+ as we grow our global direct-to-consumer businesses,” said Bob Chapek, CEO. “The global reach of our full portfolio of direct-to-consumer services now exceeds an astounding 100 million paid subscriptions—a significant milestone and a reaffirmation of our DTC strategy, which we view as key to the future growth of our company.”