During the Q3 earnings, Disney reported that its streaming device Disney+ had a total of 60.5 million users globally. They also announced that the Parks, Experiences, and Product segment had an adverse effect of almost $3.5 billion due to the pandemic outbreak.
The Walt Disney company shared its Q4 and full fiscal year 2020 earnings today.
In the Q4, Disney reported 74 million subscribers to its streaming service. The company showed less drastic losses in revenue as expected.
The Coivd-19 had impacted Disney’s Park divisions because restriction forced them to shut down temporarily. Disneyland Resorts were also shut down in California as the cases were continually rising up.
Few Parks reopened in cities like Florida, Hong Kong, Shanghai, and Japan that too with limited capacity. The Paris Disneyland is still asked to be shut, and it won’t open until 2021. The impact of all this in the monetary aspect was about $2.4 billion.
Let’s Talk Numbers
The total sales of $14.7 billion were down 23% from $19 billion last year. Wall Street had anticipated $14.2 billion for this fiscal year. The revenue for parks and studio entertainment also fell by 61% and 52%, respectively.
The company’s turn to streaming platforms and fast growth in Disney+ has kept the positive buzz and the stocks afloat. “The shift to streaming was critical, but the prospect of successful streaming execution and a healthy parks and theatrical business is a powerful combination,” Alan Gould of Loop Capital said in a recent note. “We believe a strong Disney+ subscriber number will outweigh what will undoubtedly be an ugly quarter from both an operational and impairment perspective.”
It was buoyed by recent reports that a highly effective vaccine(Pfizer) is onboard, which maybe FDA approved this year. That’s a hopeful news for travel, parks, movie theatres, and advertising.