Covid-19 pushes Disney into loss for second quarter | News
Entertainment giant Disney lost $4.7 billion (£3.6 billion) in the three months to June, as the virus forced it to close theme parks and delay film releases and production.
The figure is a sharp fall from the nearly $1.8 billion profit the company reported in the same period last year.
Disney said the pandemic was largely responsible for a $3 billion hit to its operating income.
In turn, this was mostly due to the disruption to its theme parks, where revenues plunged 85 per cent compared to 2019, chief financial officer Christine McCarthy said.
Overall revenue fell 42 per cent compared with last year to $11.8 billion.
The company said in a statement to markets: “The impact of Covid-19 and measures to prevent its spread are affecting our segments in a number of ways, most significantly at parks, experiences and products where we closed our theme parks and retail stores, some of which have now re-opened, suspended cruise ship sailings and guided tours and have seen an adverse impact on our merchandise licensing business.
“Lower operating results for the quarter were due to decreases at both the domestic and international parks and experiences businesses and to a lesser extent, at our merchandise licensing and retail businesses.”
Disney said its domestic parks and resorts, cruise line business and Disneyland Paris were all closed for all of the three months to June.
Parks in Asia were closed for a portion of the quarter, with Shanghai Disney Resort re-opening in May and Hong Kong Disneyland Resort following in late June.
However, Hong Kong Disneyland Resort closed again in July.