Park Revenue Collapses by 85% to Erase $4.72bn from Disney Revenue

According to the research data analyzed and published by Stock Apps, Walt Disney Co. made a $4.72 billion loss. This stood in sharp contrast to its 2019 Q3 performance when it reported a net income of $1.43 billion.

Total revenue for the period was $11.78 billion, a 42% drop year-on-year (YoY). It was significantly lower than analysts’ estimate of $12.39 billion according to FactSet.

Parks Segment Loses $3.5B as Disney+ Surpasses 60M Subscribers in 8 Months

There was a profit of 8 cents in earnings per share (EPS) against an expected loss of 64 cents per share. This marked a 94% drop YoY. One of the key reasons for the dismal performance was the closure of Disneyland and other parks and resorts.

According to a Statista report, the parks, experiences and products segment dropped from $7.4 billion in Q1 2020 to $983 million in Q3. This segment alone accounted for losses surpassing $3.5 billion, marking an 85% drop YoY. Studio entertainment was also badly hit due to theatre closures and movie release delays. It dropped from $3.76 billion in Q1 to $1.74 billion in Q3.

During the same period, most entertainment companies also suffered losses. For instance, AT&T reported an $830 million loss while Live Nation revenue declined by 98%. But Sony Corp was less badly hit thanks to its gaming section, reporting only a 1.1% decline YoY.

Among the few positive reports for Disney was the fact that Disney+ had surpassed 60.5 million subscribers. It is noteworthy that at launch, the new streaming service had the goal of reaching 60 to 90 million subscribers by 2024. In total, Disney’s paid subscribers numbered over 100 million across streaming services. Hulu had 35.5 million subscribers while ESPN+ had 8.5 million.