The pandemic has caused various facets of Disney’s business to dry up.
Despite Disney’s burgeoning success in the streaming market, it hasn’t been enough to make up for the damage the COVID-19 pandemic has caused to their physical business ventures. From the closures of Disneyland and Disney World to the delay of theatrical movie releases, it’s been hit after hit to the media giant, and their recently posted Q2 earnings reflect this.
According to Disney’s Q2 posting, the pandemic has caused a 90% drop in total profits, equaling approximately $1 billion lost in potential profits. Q2 profits are sitting around $460 million, with shares trading at only 60 cents per. That’s a $1.01 per share drop compared to Q2 2019. Analysts were previously expecting shares to trade in the ballpark of 90 cents per, but the damage caused to Disney by closures and cancellations, not just in the US but around the world, are only now coming into clear view.
Despite the hardship, Bob Chapek, who recently took over for Robert Iger as Disney’s CEO, is confident the company can weather the pandemic successfully. “While the COVID-19 pandemic has had an appreciable financial impact on a number of our businesses, we are confident in our ability to withstand this disruption and emerge from it in a strong position,” he said.
Iger, who currently serves as executive chairman, echoed these sentiments. “As someone who has been around for a while and led this company through some really tough days over the last 15 years, including economic downturns, natural disasters and other unforeseen events, I have absolute confidence in our ability to get through this challenging period and recover successfully,” he said.