The Covid-19 pandemic has had a major impact on Walt Disney's operations. However, the American company was able to put in place the right strategies to better manage its services during the health crisis. Thus, this Thursday, it presents rather interesting quarterly results.
Despite the global economic crisis caused by the coronavirus pandemic, Walt Disney has been able to achieve encouraging performances over the last three months. The Group 's best quarterly results are helped by the resumption of live sports broadcasting on its ESPN channel. The gradual resumption of activities in its amusement parks after containment also contributed to these satisfactory figures.
Admittedly, the American company saw its turnover decrease by 23% to 14.71 billion dollars corresponding to 12.46 billion euros. It must be said that these figures are not far from analysts' expectations for the group's quarterly financial results.
In fact, on average, analysts expected the US entertainment giant to record a decline of about $14.2 billion. In addition, Disney's loss was adjusted by 20 cents per share. This is well below Wall Street's forecast, which had anticipated an adjusted loss of 70 cents per share.
At the close of trading on the New York Stock Exchange, Walt Disney stock was announced to be in the green with a 5.6% increase in trading.
A year ago, the American group launched its online video service " Disney+ ". It should be remembered that Disney's objective in creating this platform was to compete with the Netflix (NASDAQ:NFLX) stock. Thus, since its creation, the site has 73.7 million subscribers. For its part, Hulu has 36.6 million visitors. ESPN+ has 10.3 million visitors.
As the one-year free trial period offered to Verizon Communications subscribers comes to an end , Disney+ is at a turning point. However, the company believes that it plans to launch new productions in the near future.
Thus, the group announces for this month, the launch of a Lego special " Star Wars ". On the other hand, the film " Soul " from the Pixar studios is expected to be released in January for Christmas. The same goes for the Marvel series " WandaVision ". Moreover, the loss of money suffered by Disney+ is due to the investments necessary for its development.
For the quarter, the platform had a negative balance sheet estimated at $580 million. However, this result is below analysts' expectations of a loss expected to reach $1 billion.
The activities of the American entertainment giant have not been spared by the health crisis. Only " Streaming " has not suffered a pandemic crisis related to the new coronavirus. Indeed, because of this situation, Disney was forced to close its amusement parks. Also, the group has been disrupted by the cessation of sports competitions around the world.
According to the company, the health crisis caused a $2.4 billion loss in profits from its amusement parks. However, Disney has been able to implement effective strategies that have allowed it to manage its operations well.
Thus, in a press release, the group's CEO Bob Chapek stated : " Even withthe disruption caused by COVID-19, we have been able to manage our operations effectively while taking bold and purposeful initiatives to place our business on a path of greater growth over the long term".