On the 1 year anniversary of the launch of Disney+, the Walt Disney Company’s stock closed for the day at $135.52 a share before reporting their earnings for the fourth quarter (Q4) and the full fiscal year 2020 which ended on September 28, 2020. Within the first hours of after hours trading the stock rose to over $140/share as the losses were not as drastic as anticipated coupled with the announcement Disney has over 73 million paid Disney+ subscribers as of the end of the 4th quarter. The Walt Disney Company today reported earnings for its fourth quarter and fiscal year ended October 3, 2020.
“Even with the disruption caused by COVID-19, we’ve been able to effectively manage our businesses while also taking bold, deliberate steps to position our company for greater long-term growth,” said Bob Chapek, Chief Executive Officer, The Walt Disney Company. “The real bright spot has been our direct-to-consumer business, which is key to the future of our company, and on this anniversary of the launch of Disney+ we’re pleased to report that, as of the end of the fourth quarter, the service had more than 73 million paid subscribers – far surpassing our expectations in just its first year.”
Bob Chapek, Chief Executive Officer, The Walt Disney Company
Diluted earnings per share (EPS) from continuing operations for the fourth quarter was a loss of $0.39 compared to income of $0.43 in the prior-year quarter. Excluding certain items affecting comparability(1), diluted EPS for the quarter was a loss of $0.20 compared to income of $1.07 in the prior-year quarter. EPS from continuing operations for the year was a loss of $1.57 compared to income of $6.26 in the prior year. Excluding certain items affecting comparability(1), EPS for the year decreased to $2.02 from $5.76 in the prior year. Results in the quarter and fiscal year ended October 3, 2020 were adversely impacted by the novel coronavirus (COVID-19). The most significant impact was at the Parks, Experiences and Products segment where since the second quarter of the fiscal year, our parks and resorts have been closed or operating at significantly reduced capacity and our cruise ship sailings have been suspended.
The Parks, Experiences & Products (which includes Disney Cruise Line) revenues for the quarter decreased 61% to $2.6 billion, and segment operating results decreased $2.5 billion to a loss of $1.1 billion. Lower operating results for the quarter were due to decreases at both the domestic and international parks and experiences businesses.
As a result of COVID-19, Disneyland Resort and our cruise line business were closed for all of the current quarter. Shanghai Disney Resort re-opened in May, while Walt Disney World Resort and Disneyland Paris re-opened in mid-July and Hong Kong Disneyland Resort was open for about two weeks at the beginning of the quarter and about one week at the end of the quarter. All of our re-opened parks and resorts operated at significantly reduced capacities during the current quarter.
Disney estimate the total net adverse impact of COVID-19 on segment operating income in the quarter was approximately $2.4 billion.
For more information and an overall report click over to the Q4 Fiscal Year 2020 Earnings Report. Mark your calendar, because it will take about a year for us to see the financial report for Disney Cruise Line like we recently shared for FY2019.
Walt Disney Co Full Year & Q4 2020 Earnings Results was originally published on November 12, 2020 at 04:33PM by Scott Sanders from Disney Cruise Line Blog. Far Beyond Infinity Travel Blog takes no responsibility for errors in syndicated content.