Disney lost $1.4 billion due to coronavirus last quarter
Walt Disney Co.'s latest financial results reveal just how badly the coronavirus pandemic has walloped the entertainment giant. The company on Tuesday said the total loss across its theme parks, retail stores, TV operations and other units amount to $1.4 billion, while its earnings fell by more than half, CBS News reported.
Most of the damage, or $1 billion, came from the company's closed theme parks in California, Florida, Paris, Shanghai and Tokyo as well as docking its cruise ships, the company said while releasing second-quarter earnings. Overall revenue rose to $18 billion, up 21% from a year ago and in line with analyst forecasts, but that was dressed up by its previous purchase of 21st Century Fox's entertainment assets. Disney's earnings fell 91% to $475 million, down sharply from $5.4 billion in the year-ago period.
"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 have closed our theme parks and retail stores, suspended cruise ship sailings and guided tours and experienced supply chain disruptions," Disney said in a news release.
Disney World and Disneyland were closed by March 15 as coronavirus cases increased across the nation. Days later, Disney halted its cruiselines. The company's retail stores and theater shows also have closed.