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Disney loses $ 4.7 billion due to pandemic but surpasses 100 million paying subscribers

2020-08-05T09:43:19.326Z


The American group is betting on streaming to compensate for the losses linked to the pandemic. In two months, the number of subscribers to its platform has almost doubled.


Disney lost $ 4.7 billion in the past quarter, up from nearly $ 2 billion in net profits a year ago, due to the pandemic and especially closed theme parks and stopped cruises.

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But its streaming platforms, including Disney +, now have 100 million paying subscribers, gained in part through social distancing measures. "This is a significant step that strengthens our strategy of direct services to consumers, which we consider to be key to the future growth of our company," said Bob Chapek, head of the American group. Disney +, launched last November with new releases and an impressive catalog of films, series and TV programs, reached 57.5 million subscribers at the end of June.

Turnover halved

The title of the Enchanted Kingdom appreciated by more than 5% during electronic exchanges after the closing of the Exchange, despite a turnover halved in one year, to 11.8 billion dollars, a result below expectations of the market. Its earnings per share came in at $ -2.61, but it is positive in an adjusted calculation, at 8 cents per share, factoring in a charge of $ 3.5 billion for losses from the pandemic. This charge corresponds to the negative impact on physical activities, such as theme parks, hotels and cruises.

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In other sectors, the loss of income is partly offset by the drop in production costs, as filming and travel are at a standstill. Bob Chapek welcomed the success of the streaming platforms (Disney +, ESPN + and Hulu) and the reopening of certain parks, notably in Shanghai, Paris and Florida. He said he was “as optimistic as possible” during the analyst conference call.

Source: lefigaro

All business articles on 2020-08-05

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