Disney’s quarterly results dodge investor-feared pandemic disaster

By Munsif Vengattil and Lisa Richwine

LOS ANGELES, Aug 4 (.) – Walt Disney Co reported financial results on Tuesday that were not as disastrous as some investors feared, achieving adjusted profit amid a pandemic that caused the closure of parks, movie theaters and sporting events worldwide. world.

Disney’s quarterly net profit of 8 cents a share beat expectations, which pointed to an adjusted loss of 64 cents per share. This pushed their shares up to 5% in post-close trading on the New York Stock Exchange.

COVID-19 lost Disney $ 3.5 billion in operating profit at its theme park division.

The burgeoning Disney + streaming service, however, has been a bright spot in the quarter, Bob Chapek, chief executive of Disney, told analysts on Tuesday.

The coronavirus outbreak forced the company to close some of its parks worldwide and delay the release of movies, including the highly anticipated “Mulan,” which in a surprise announcement by Disney, will be released directly to consumers in Disney + for $ 30.

The closure of theme parks in the quarter generated an operating loss of $ 1.96 billion in the parks and consumer products division. Despite the fact that four of its six theme parks worldwide are open, social distancing regulations have reduced the capacity allowed.

The media segment, which includes ESPN and Disney channels, reported a 48% increase in operating profit to $ 3.15 billion.

(Report by Munsif Vengattil in Bengaluru and Lisa Richwine in Los Angeles. Edited in Spanish by Rodrigo Charme)