The coronavirus pandemic cost Walt Disney Co. as much as $1.4 billion in lost profit last quarter, with $1 billion coming from its shuttered theme parks alone, and nearly every part of the entertainment giant’s business taking a hit.
Earnings plunged by more than half to 60 cents a share in Disney’s second quarter, excluding some items. That trailed the 86-cent average of analysts’ estimates. Revenuerose 21% to $18 billion, but that was driven by the acquisition of 21st Century Fox’s entertainment assets last year.
Disney also said it would forgo its dividend payment in July and cut capital spending by $900 million. But the company offered some hope for its theme-park business, saying its resort in Shanghai will reopen on May 11.
“We are seeing encouraging signs of a gradual return to some semblance of normalcy in China,” Chief Executive Officer Bob Chapek said on a conference call.
22,335 in U.S.Most new cases today
-16% Change in MSCI World Index of global stocks since Wuhan lockdown, Jan. 23
-1.071 Change in U.S. treasury bond yield since Wuhan lockdown, Jan. 23
-0.5% Global GDP Tracker (annualized), March