Disney says quarterly profit dropped 90 percent amid pandemic

Disney says quarterly profit dropped 90 percent amid pandemic

Media giant Disney saw its profit drop by more than 90 percent in the second quarter of its fiscal year, as the coronavirus pandemic has hamstrung all of the company’s areas of business.

Disney’s revenue went up 21 percent from a year ago, largely due to its acquisition of certain Fox assets such as FX. But, the company’s profit plummeted 91 percent from $5.43 billion last year to $475 million this year, according to The New York Times.

One-time items excluded, profit per-share dropped from $1.61 to 60 cents, a decline of 63 percent. These figures are far from the $17.8 billion in revenue and per-share earnings of 88 cents that analysts had predicted.

The company reported that Disney Parks, Experiences and Products, which encompasses theme parks, cruise vacations and retail stores, made $637 million in operating income, a drop of around 58 percent. Disney Shanghai closed its gates in January due to the initial outbreak in China, with the company’s other parks around the world eventually following suit as the virus spread across the globe.

Only its television division saw its income rise, up 7 percent to $2.38 billion.

On Feb. 25, Disney’s longtime head man Bob Iger handed the reins to Bob Chapek. Then in April, Iger joined the company’s board, becoming its executive chairman.

“What we create has never been more necessary or more important,” Iger told analysts on a conference. “People find comfort and inspiration in our messages of hope and optimism,” he said, adding that a challenge like this requires “all hands on deck.”

Disney plans on reopening its Shanghai park on May 11, albeit at a heavily reduced capacity.