Entertainment giant Disney (NYSE: DIS) surprisingly posted an adjusted earnings per share while the loss was expected. The corona plague has hit its significant and lucrative revenue – the theme parks. The media business and studio films were also affected.
The company reported revenue of $ 11.78 billion, while analysts expected $ 12.39 billion, for comparison in the same quarter last year the company reported revenue of $ 20.35 billion.
The company reported adjusted earnings per share of 8 cents, while the expectation was for a loss of 63 cents per share. In the same quarter last year, the company reported earnings per share of $ 1.35. The relatively good results are due to efficiencies as well as government subsidies that have offset the company’s current expenses.
As expected the parks were most significantly affected as a result of the virus spreading, the company reported a loss of $ 1.96 billion from this unit, compared to a profit of $ 1.7 billion in the corresponding quarter. In 2019, the amusement park accounted for about half of the 2019 operating profit.
The drought at sporting events has also impacted Disney’s ESPN business and the company’s overall media sector, alongside a rejection of Disney movies. The only bright spot in the Disney report is the streaming business, and despite the increase in subscribers during the quarter, this unit remained as expected to make a loss due to the costs involved in uploading the services.
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