The Walt Disney Company (DIS) reported third-quarter earnings recently and announced the premiere of “Mulan” on Disney+ in some markets. Disney reported earnings of 8 cents a share and revenue of $11.78 billion, witnessing a drop of 42%.
Other Earning Highlights:
- Disney parks revenue dropped 85% to $1 billion, and the segment put $3.5 billion impacts on operating income caused by the Covid-19 closures.
- Broadcast rose 12% to $2.5 billion
- Cable revenue dropped 10% to $4 billion.
- Direct-to-consumer revenue such as streaming services, increased 2% to $3.97 billion.
- Movie studio revenue dropped 55% to $1.7 billion.
- Disney+ had 60.5 million subscribers, as of Aug. 3, up from 54.5 million in early May.
- Hulu had 35.5 million subscribers, an increase of 27% from a year ago, and ESPN+ had 8.5 million, up from 2.4 million a year ago.
- Disney reduced capital spending, cut salaries for senior management, and furloughed employees to survive the virus outbreak.
- The company also withdrew the semiannual, 88-cent dividend per share of Disney stock, preserving $1.6 billion in cash.
CFO Christine McCarthy expected the ESPN ad revenue should improve in Q4 as the NBA resumed the season. The company also plans to launch a Star-branded general entertainment streaming service in 2021, inspired by content from ABC, Fox, FX, 21st Century, Freeform, and Searchlight.
Dow 30 Component, The Walt Disney Company (DIS), and its subsidiaries is a diversified worldwide entertainment company that operates in four business segments: Studio Entertainment, Media Networks, Parks and Resorts, and Consumer Products & Interactive Media. To learn more about this Dow 30 Component, The Walt Disney Company (DIS), and to continue to track its progress please visit the Vista Partners Walt Disney Company, Coverage Page.
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