Bob Chapek, CEO of Disney
Disney: Income of US$18 billion in 1Q 2020
08 de mayo de 2020
The Walt Disney Company revealed the financial results of the year´s first quarter, reflecting that many of the company´s businesses have been diminished by the pandemic, and others have grown significantly, especially Disney+.
The company reported a total income of US$18 billion, which represents an increase of 21% with respect to US$14.9 billion of the first quarter of last year. The reported income exceeded analysts' expectations (US$17.6 billion) by 1% but was lower than what analysts forecasted since the virus significantly affected the last weeks of the quarter.
Earnings per share had a great fall with respect to the first quarter of 2019 and also compared to what investors and stockholders expected. Earnings per share are now at US$0.60, a drop from US$1.61 a year earlier. Market expectations were US$0.88 per share.
The pandemic mainly affected parks, hotels, and cruises, which remain closed, with losses of over US$1 billion, the same as studios. for its part, ESPN had a considerable decrease in advertising sales due to the cancellation of sports events.
The most favored, on the other hand, was the Media Networks division, which has increased its income by 28%, up to US$7 billion, thanks to Disney+, and the Cable Networks business has improved its sales by 17%, up to US$4 billion.