Park Closures Cost Disney US$2 Billion

Walt Disney missed quarterly revenue estimates and reported a rare loss on Tuesday, as the Covid-19 pandemic pummeled its theme parks and movie studio businesses, even as the crisis helped its streaming services gain subscribers.

The outbreak forced the company to close some of its parks globally, delay the release of films, including the much-anticipated "Mulan".

Closure of theme parks in the quarter resulted in an operating loss of US$1.96 billion in parks and consumer products business. Even as four of its six theme park resorts around the world have opened, social distancing rules have weighed on visitors allowed.

Disney's Hong Kong park – majority owned by the SAR government – has been closed for most of the year due to the Covid-19 pandemic.

The media network segment, which includes ESPN and Disney channels, reported a 48 percent jump in operating income to US$3.15 billion.

The direct-to-consumer and international segment, which houses its streaming service, Disney+, reported an operating loss of US$706 million, compared with an operating loss of US$562 million in the year-ago quarter.

Operating income in the movie studio segment, which includes Marvel, Pixar, Lucasfilms and Fox, fell 16 percent to US$668 million, in a quarter marked by cinema closures.

Overall revenue fell 42 percent to US$11.78 billion. Analysts on average had expected revenue of US$12.37 billion.

Net loss from continuing operations was US$4.72 billion, or US$2.61 per share, in the third quarter ended June 27, compared with a net profit of US$1.43 billion, or 79 cents per share, a year earlier. (Reuters)