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    Disney quarterly revenue drops 42%; streaming service’s subscriber tally reaches 60.5 Million

    By SHOOTUpdated:No Comments1203 Views
    Park guests enter the Magic Kingdom during the reopening of Walt Disney World, Saturday, July 11, 2020, in Lake Buena Vista, Fla. Walt Disney Co. reported net income that plummeted dramatically in the third quarter, when it most of its theme parks remained closed and theatrical movie releases were postponed. Net income results were better than the loss analysts expected, however, but revenue missed expectations. (AP Photo/John Raoux)
    BURBANK, Calif. (AP) --

    Walt Disney Co. on Tuesday reported that its net income plummeted dramatically in the three-month period that ended in June when it most of its theme parks were shuttered and theatrical movie releases were postponed.

    Still, its bottom-line results were better than analysts expected, although its revenue missed expectations.

    Disney has soared to success with the breadth of its media and entertainment offerings, but now it's trying to recover after the coronavirus pandemic pummeled many of its businesses. It was hit by several months of its parks and stores being closed, cruise ships idled, movie releases postponed and a halt in film and video production.

    For quarter that ended June 27, the company posted a loss of $4.84 billion, or $2.61 per share, compared to a profit of 79 cents in the prior year quarter. Adjusted to exclude one-time items such as restructuring costs and impairment charges, it net income came to 8 cents per share. Analysts expected an adjusted loss of 64 cents per share, according to FactSet.

    Revenue fell 42% to $11.78 billion, missing analyst expectations of $12.39 billion, according to FactSet.

    Disney has been opening its parks back up around the globe, but most were still shuttered during the company's fiscal third quarter. 

    In May, it opened Disney Springs, a complex of shops, restaurants and entertainment venues in Lake Buena Vista, Florida. Hong Kong Disneyland reopened in June, but closed again after a month due to an outbreak in the city. It reopened Walt Disney World's Magic Kingdom and Animal Kingdom, Epcot and Disney's Hollywood Studios in Orlando, Florida, in July.

    Disney said closing its parks cost it $3.5 billion during the quarter.

    The streaming service Disney Plus continued to be a bright spot.

    Disney reported Disney Plus, which costs $7 a month, had 57.5 million paid subscribers as of June 27. On a call with analysts, CEO Bob Chapek said that number reached 60.5 million as of Monday. The service debuted in November in the U.S. and rolled out to the UK and other parts of Europe last month. Disney Plus, Hulu and ESPN Plus combined reached over 100 million subscribers, the company said.

    Netflix, by contrast, has about 183 million subscribers, a base it has spent years building.

    Tags:Disney+Walt Disney Co.



    Trump taps “Apprentice” producer, Mark Burnett, as special envoy to the U.K.

    Saturday, December 21, 2024
    Television producer Mark Burnett, left, looks on as President Donald Trump arrives for the National Prayer Breakfast, Feb. 2, 2017, in Washington. (AP Photo/Evan Vucci, File)

    Mark Burnett, the power producer who helped reintroduce Donald Trump to a national television audience with "The Apprentice," is being tapped by the president-elect as special envoy to the United Kingdom in his upcoming administration.

    "With a distinguished career in television production and business, Mark brings a unique blend of diplomatic acumen and international recognition to this important role," Trump announced Saturday.

    Burnett, who was born in London, helped produce hits like "Survivor" and "The Voice," but is perhaps best known for teaming up with Trump for "The Apprentice," which first aired on NBC in 2004.

    Trump had been well-known in real estate and pop culture circles for decades. But the show helped again make him a household name — though Trump severed ties with NBC in 2015, the same year he launched his first White House run.

    The selection of Burnett continues Trump's trend of filling out his incoming administration with people who have high-profile backgrounds in television or politics, or both — including his choice to be defense secretary, Pete Hegseth, a former co-host of "Fox & Friends Weekend," and ex-television doctor and unsuccessful Senate candidate in Pennsylvania, Mehmet Oz.

    Trump's first campaign in 2016 was rocked by allegations about his conduct on "The Apprentice" and other appearances during his association with NBC, notably in footage in which he said he could sexually assault women and get away with it because he was a "star."

    Almost a decade after he left his reality TV role, Trump's television career remains central to his biography and political rise. The show presented Trump Tower to tens of millions of people as a symbol of power and success before Trump launched his first... Read More

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