The growth of the Disney video-streaming platform and the improvement of its entertainment business and the activity of amusement parks in part, gave investors new hope that the company has passed the worst phase of the Corona virus epidemic, as after the company announced its quarterly revenue, the shares jumped 5.6% to 143, $12 in trading after the stock market closed, and total revenue fell 23% to $14.71 billion this quarter, beating analyst estimates who had expected it to fall to $14.2 billion, moreover, the company changed its loss-per-share ratio to 20 cents, also beating expectations. Wall Street lost 70 cents per share.
A year after the launch of the Disney project to compete Netflix, the company said it had about 73.7 million subscribers. In the last quarter the company’s video broadcasting division lost about $580 million, less than analysts’ expectations that predicted a loss of $1 billion, according to expectations. According to the company, the project will generate profits in 2024. Disney aims to obtain new subscriptions from the current period until the beginning of the new year, in conjunction with the launch of several new films.
The company also stated that the pandemic caused a loss of $2.4 billion in the profits of its theme parks, and now its theme parks and amusement parks have begun to receive visitors, but the increasing number of injuries in Europe and the United States represents a risk to the process of reopening, as many of its parks have returned. To operate again, especially the company’s main resort in Florida, but due to adherence to the necessary precautions and reducing the number of visitors to only 35% of its capacity, the company’s parks and products lost about $ 1.1 billion, although it was less than analysts’ expectations. Disneyland in California has been closed since March and the Paris branch was closed again in October due to the increasing number of cases in France, and expectations say that even with the emergence of a vaccine, the company’s business will need months and perhaps years to return to its previous status.
In the field of media networks, the return of basic sports helped revitalize the work of ESPN, as the company announced revenue growth of $1.9 billion, 5% higher than last year, and in another context, Disney profits from films fell 61% to reach to $419 million, in conjunction with the company delaying the release of its major films until 2021, with the continued closure of theaters. Disney added that it will postpone their half-year revenue distribution to the end of the year in order to fund its video streaming platform.