Disney reports narrower than expected loss in the fiscal fourth quarter
- Disney reports narrower than expected loss in the fiscal fourth quarter.
- The American multinational reports £11.16 billion of revenue in Q4.
- Disney forecasts £760 million of COVID-19 related costs in fiscal 2021.
The Walt Disney Company (NYSE: DIS) reported a sharp increase in subscribers for its streaming service in the fiscal fourth quarter. Disney also said that its revenue was better than expected in Q4. But officials said on Thursday that Disneyland was likely to remain closed for the public until 2021.
Shares of the company jumped more than 3% in extended trading on Thursday. On a year to date basis, Disney is now about 9% down in the stock market.
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Disney’s Q4 financial results versus analysts’ estimates
According to Refinitiv, experts had forecast the company to print £10.77 billion of revenue in the fourth quarter. Their estimate for loss per share stood at 53.87 pence. In its report on Thursday, Disney topped both estimates posting a higher £11.16 billion of revenue and a much narrower 15.18 pence of loss per share in Q4.
The Burbank-based company said it concluded the fourth quarter with over 73 million paid subscribers for Disney+. In late September, Disney said that it planned on cutting roughly 28 thousand jobs in the United States.
Disney’s revenue from parks, experiences and products came in at £1.96 billion in the recent quarter that represents a 61% annualised decline. Revenue from media networks, on the other hand, jumped 11% in Q4 to £5.47 billion. At £1.21 billion, studio entertainment revenue was 52% down on a year over year basis, while its direct-to-consumer and international segment saw a 41% growth in revenue in Q4 to £3.68 billion.
Disney forecasts £760 million of COVID-19 related costs in 2021
The American multinational said that its parks division took the hardest hit to operating income due to the COVID-19 restrictions in recent months that it valued at £1.82 billion. As per Disney, costs related to the ongoing Coronavirus pandemic are expected to print at close to £760 million in fiscal 2021.
CEO Bob Chapek commented on the earnings report on Thursday and said:
“Our health and safety protocols are all science-based and have the support of labour unions representing 99% of our hourly cast members. Frankly, as we and other civic leaders have stated before, we believe state leadership should look objectively at what we’ve achieved successfully at our Parks around the world, all based on science, as opposed to setting an arbitrary standard that is precluding our cast members from getting back to work.”
At the time of writing, the diversified mass media and entertainment conglomerate has a market cap of £185.82 billion.