Entertainment giant Disney plunged into the red

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Dhe corona crisis has deep marks in the entertainment group Walt disney leave. The company reported an unfamiliar net loss of $ 4.7 billion on Tuesday after the market closed for the past quarter. Revenue plummeted 42 percent to $ 11.8 billion. The situation in the division, which includes the amusement parks, cruise ships and Disney shops, is particularly dramatic. Here, sales fell 85 percent from $ 6.6 billion to just $ 983 million.

Most Disney parks were closed in the reporting quarter ended June 27. The park in Shanghai reopened in May, and Hong Kong initially allowed visitors again at the end of June, but the site was closed again in July. The parks in Paris and Florida reopened in July, Disneyland in California is still not open to visitors. When it reopens, Disney is cautious and limits the number of guests. Disney says that in the amusement parks division alone, the corona crisis depressed operating income by $ 3.5 billion.

“Mulan” on the television at home

Other parts of the group have also been hit hard by the pandemic. In the film division, sales fell by more than 50 percent. With cinemas closed, Disney has postponed or canceled new movie releases. And the group struggled with high standards from the previous year when the superhero film “Avengers: Endgame” came out. Disney also suffers from the temporary suspension of film and TV series production due to the Corona crisis. However, CEO Bob Chapek had good news here and said in a conference call that work on new material had resumed both in America and abroad.

The big hope of the group is currently the video platform “Disney +”, which with Netflix competes. It started in America last November and has also been available in Germany since March. Chapek said it now has 60.5 million subscribers, which is well above the original plan. Compared to the beginning of May, when Disney last mentioned numbers and spoke of 54.5 million customers, the growth was manageable, especially since Disney + launched the highly anticipated musical “Hamilton” a few weeks ago. Netflix also recently reported on quarterly figures that the initial surge in subscriber numbers has weakened again as a result of the Corona crisis.

Disney now has more than 100 million paying customers across all of its video platforms, including Disney +, Hulu and ESPN +. And Chapek announced the launch of another video service under the “Star” brand for the next year. “Disney +” in turn should now play a central role in the release of the highly anticipated film “Mulan”. Disney actually wanted to show the film in cinemas in the spring, but then postponed it repeatedly because of the corona crisis, most recently even indefinitely. Now the film is to be made available in America and also in some European markets on September 4th on “Disney +”, so you can watch it on your television at home. However, this will not be included in the subscription. If you want to watch the film in America, Chapek has to pay an additional $ 29.99.

Disney’s sharply shrinking consolidated sales in the past quarter were lower than analysts predicted, but adjusted earnings per share were above expectations. This may have contributed to Disney’s share price rising temporarily by more than five percent. After the corona crisis hit the company with force, the share price initially fell dramatically. However, since the low point in March, it has risen again by more than 35 percent. However, the stock still costs less than at the beginning of the year.

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