Disney posts smaller-than-expected drop in quarterly revenue, shares rise

(Reuters) - Walt Disney Co reported a smaller-than-expected drop in fourth-quarter revenue on Thursday, as the company added new streaming customers and its theme parks reopened after the COVID-19-induced shutdowns, sending its shares up 5.4%. Most of Disney's theme parks, including its flagship resort in Florida, opened up for visitors during the quarter, but with limited attendance, mask requirements and other safeguards

Reuters November 13, 2020 03:06:14 IST
Disney posts smaller-than-expected drop in quarterly revenue, shares rise

Disney posts smallerthanexpected drop in quarterly revenue shares rise

(Reuters) - Walt Disney Co reported a smaller-than-expected drop in fourth-quarter revenue on Thursday, as the company added new streaming customers and its theme parks reopened after the COVID-19-induced shutdowns, sending its shares up 5.4%.

Most of Disney's theme parks, including its flagship resort in Florida, opened up for visitors during the quarter, but with limited attendance, mask requirements and other safeguards.

Operating loss from the parks and consumer products business was about $1.1 billion (£838 million). Disneyland in California has remained shut since March and Disneyland Paris was forced to close for a second time in October as virus cases spiked in France.

"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 of Disney, in a statement.

The direct-to-consumer and international segment, which includes its streaming service, Disney+, reported an operating loss of $580 million, compared with $751 million a year earlier. Disney+ had 73.7 million paid subscribers as of Oct. 3.

Overall revenue fell about 23% to $14.71 billion in the quarter ended Oct. 3, above analysts' average estimate of about $14.2 billion, according to Refinitiv IBES data.

The company's shares, a component of the blue-chip Dow index, were up at $142.82 in after-market trading.

(Reporting by Akanksha Rana in Bengaluru and Lisa Richwine in Los Angeles; Editing by Arun Koyyur)

This story has not been edited by Firstpost staff and is generated by auto-feed.

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