Shares of Disney rose 5.9% in after-hours trading after the company posted Q4 revenues of $14.71 billion, up from expected $14.20 billion, but below prior year’s $19.1 billion, according to the company’s press release. Q4 adjusted loss per share was 20 cents, better than expected loss of 73 cents, but below prior year’s $1.07. Quarterly earnings were weighed by pandemic impacts on theme parks, studio, and media business.
- Disney expects to incur an additional $1 billion in the new fiscal year to roll out extra safety measures for guests and talent.
- The company will not declare a semi-annual cash dividend for the second half of 2020 in light of the ongoing COVID-19 impacts.
- Disney plus brought on 73.7 million subscribers as of the end of Q4, above the estimated 65.5 million.
- Disney plus’s growth led the company to reorganize in October to avail more premium streaming content to the customers.
- Stay-in-place orders during the pandemic have boosted engagement on Disney’s and other media company’s streaming platforms.
- Disney’s parks recorded an operating loss of $1.1 billion as revenue dropped 61% over last year due to closures of theme parks during the pandemic.
- Disney’s direct-to-consumer and international segment posted operating losses of $580 million during the quarter, while revenue jumped 41% to almost $4.9 billion.
- Disney’s stock has underperformed the broader market year-to-date as shares fell 7% in 2020 through Thursday’s close.
- Disney had announced 28,000 job cuts at the end of September to stay afloat.
Disney’s stock is currently gaining. DIS: NYSE is up 3.86% on premarket