The Walt Disney Company reported earnings for its second fiscal quarter ended March 28, 2020.
The company estimates a loss of more than $1 billion as the result of Disney theme parks closing worldwide. Overall, the Walt Disney Company estimates a loss of more than $1.4 billion between all of its operating businesses. Even though most of the financial loss can be attributed to their parks and cruise line, their halted film and TV production was also a factor. The lack of live sports events and the inability to screen new movies in theaters created an additional loss of revenue and an increase in bad debt expense.
The report acknowledges the impact of COVID-19 while assuring the public about the company’s faith in the Disney brand. To summarize:
“While the COVID-19 pandemic has had an appreciable financial impact on a number of our businesses, we are confident in our ability to withstand this disruption and emerge from it in a strong position,” said Bob Chapek, Chief Executive Officer, The Walt Disney Company. “Disney has repeatedly shown that it is exceptionally resilient, bolstered by the quality of our storytelling and the strong affinity consumers have for our brands, which is evident in the extraordinary response to Disney+ since its launch last November.”
To read the full report click here.
Source: Walt Disney Company