Crown crisis: Disney keeps losing money | Free Press

Entertainment giant Disney continues to groan under the pandemic that paralyzes theme parks, resorts and cruise ships. However, business recently has not been as bad as feared. Booming streaming services are a bright spot.

Burbank (dpa) – The Corona crisis brought another room to the red for Walt Disney. In the three months to the end of September, the bottom line was $ 710 million (€ 601 million), as announced by the US entertainment giant after the US market closed.

In the previous year there was still $ 777 million in profit. However, Disney is slowly recovering from the shock of the crown, which shut down much of the entertainment empire and resulted in a massive $ 4.7 billion loss in the previous quarter.

CEO Bob Chapek once again highlighted as a great success the streaming business of the online video service Disney +, which was launched exactly one year ago and already had almost 74 million users at the end of the quarter and exceeded expectations. Otherwise, business figures were well above analysts’ forecasts, initially causing the stock to rise sharply after business hours. However, Disney remains hard hit overall, with sales falling 23 percent year-on-year to $ 14.7 billion.

The business of amusement parks, resorts and cruise ships in particular, which is a major profit generator in normal times, remains under enormous strain. Revenue fell 61 percent to $ 2.6 billion and there was an operating loss of $ 1.1 billion. The streaming business with services like Disney + or Hulu is booming during the pandemic, but it is not yet profitable, with a negative result of $ 580 million. Only the classic cable division and movie studios made a profit. But that was not enough to bring the consolidated balance sheet into positive territory.

In all of last fiscal year 2020, Disney reported a net loss of $ 2.8 billion. For comparison: in the previous year, the group had made $ 10.4 billion. Revenue fell just six percent to $ 65.4 billion, initially business was still doing well, but then the pandemic intervened and caused billions in additional costs. According to financial data provider Factset, the group has suffered no annual losses since at least 1980. Disney’s fiscal year differs from the calendar year and ends in September.