Disney Misses Estimates, Reports Rare Quarterly Loss

(Reuters) – Walt Disney Co missed quarterly revenue estimates and reported a rare loss on Tuesday, as the COVID-19 pandemic pummeled its theme parks and movie studio businesses, even as the crisis helped its streaming services gain subscribers.

The outbreak forced the company to close some of its parks globally, delay the release of films, including the much-anticipated “Mulan”.

Closure of theme parks in the quarter resulted in an operating loss of $1.96 billion in parks and consumer products business. Even as four of its six theme park resorts around the world have opened, social distancing rules have weighed on visitors allowed.

The media network segment, which includes ESPN and Disney channels, reported a 48% jump in operating income to $3.15 billion.

The direct-to-consumer and international segment, which houses its streaming service, Disney+, reported an operating loss of $706 million, compared with an operating loss of $562 million in the year-ago quarter.

Operating income in the movie studio segment, which includes Marvel, Pixar, Lucasfilms and Fox, fell 16% to $668 million, in a quarter marked by movie theater closures.

Overall revenue fell 42% to $11.78 billion. Analysts on average had expected revenue of $12.37 billion, according to Refinitiv IBES data.

Net loss from continuing operations was $4.72 billion, or $2.61 per share, in the third quarter ended June 27, compared with a net profit of $1.43 billion, or 79 cents per share, a year earlier.

Reporting by Munsif Vengattil in Bengaluru and Lisa Richwine in Los Angeles; Editing by Sriraj Kalluvila.

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Source: Reuters