The 2021 first quarter earnings report from the Walt Disney Company continue to show the effects of the COVID-19 shutdown and subsequent reduced capacity at its theme parks.
The total net adverse impact of COVID-19 on the Disney Parks, Experiences and Product segment operating income in the quarter was approximately $2.6 billion. Revenue at the segment fell 53% to $3.58 billion.
Revenue was $16.25 billion vs $15.9 billion expected, and stock was up 1.5% as a result. The star performer continues to be Disney+ which now has 95 million paying subscribers.
“We believe the strategic actions we’re taking to transform our Company will fuel our growth and enhance shareholder value, as demonstrated by the incredible strides we’ve made in our DTC business, reaching more than 146 million total paid subscriptions across our streaming services at the end of the quarter,” said Bob Chapek, Chief Executive Officer, The Walt Disney Company. “We’re confident that, with our robust pipeline of exceptional, high-quality content and the upcoming launch of our new Star- branded international general entertainment offering, we are well-positioned to achieve even greater success going forward.”
You can view the full earnings report here, and below is the Parks, Experiences and Products statement.
Disney Parks, Experiences and Products revenues for the quarter decreased 53% to $3.6 billion, and segment operating results decreased $2.6 billion to a loss of $119 million. Lower operating results for the quarter were due to decreases at both the domestic and international parks and experiences businesses.
As a result of COVID-19, Disneyland Resort was closed and our cruise business was suspended in the current quarter. Disneyland Paris closed on October 30, 2020 and Hong Kong Disneyland Resort closed on December 2, 2020. Walt Disney World Resort and Shanghai Disney Resort were open in the current quarter. Our parks and resorts that were open during the quarter operated at significantly reduced capacities.
At our consumer products business, operating income growth was driven by an increase in games licensing revenue reflecting the release of Marvel’s Spider-Man: Miles Morales.
We estimate the total net adverse impact of COVID-19 on segment operating income in the quarter was approximately $2.6 billion.
Article Posted:
Feb 11, 2021 / 4:07pm ET