Disney reports £3.61 billion of net GAAP loss in fiscal Q3

Disney reports £3.61 billion of net GAAP loss in fiscal Q3
Written by:
Wajeeh Khan
4th August, 22:36
Updated: 4th August, 22:38
  • Disney reports £3.61 billion of net GAAP loss in the third quarter.
  • Its operating income took a £2.68 billion hit due to COVID-19.
  • Disney will announce its decision regarding H2 dividend later this year.

The Walt Disney Company (NYSE: DIS) published its quarterly financial results on Tuesday that sent its shares up 5% in extended trading. According to CEO Bob Chapek, Disney will release Mulan online via Disney Plus.

At £94 per share, including the gain in after-hours trading on Tuesday, Disney is currently more than 15% down year to date in the stock market after recovering from an even lower £65.62 per share when the impact of COVID-19 was at its peak. Learn more about why prices rise and fall in the stock market.

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Disney’s Q3 financial results versus analysts estimates

According to Refinitiv, experts had forecast the company to print £9.46 billion in revenue in the fiscal third quarter. Their estimate for loss per share was capped at 48.97 pence. In its report on Tuesday, Disney missed on the estimate for revenue posting a lower £9.01 billion in revenue in Q3. Its per-share earnings of 6.12 pence on an adjusted basis, however, were stronger than expected.  

The American multinational reported £3.61 billion of net GAAP loss in the third quarter. Its only business that reported an annualised growth in revenue was the direct-to-consumer and international segment.

Owing to the ongoing Coronavirus pandemic that pushed Disney parks into temporarily shutting down, the company’s operating income took a £2.68 billion hit in the recent quarter. Disney suspended its H1 dividend earlier this year. The decision regarding H2 dividend, the U.S. company said, will be announced in November or December.

Its streaming services, the diversified mass media and entertainment company said, have hit the 100 million milestone for paid subscribers. Disney+, it added, contributes more than 50% (57.5 million) of these paid subscribers, as of the end of fiscal Q3.

Other prominent figures in Disney’s earnings report

Other prominent figures in Disney’s earnings report on Tuesday include a 2% increase in revenue that it generated from Media Networks to £5.02 billion. As per the Burbank-based company, its revenue from Parks, Experiences, and Products declined by a massive 85% to £752.14 million in the third quarter.

At £1.33 billion, Studio Entertainment revenue slumped 55% in Q3 while a 2% increase in revenue to £3.04 billion from Direct-to-Consumer and International segment was also reported on Tuesday.

Disney’s performance in the stock market was reported fairly upbeat last year with an annual gain of a little under 40%. At the time of writing, it is valued at £162.10 billion and has a price to earnings ratio of 39.58.

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