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Oct 03, 2020
Disney Q4 2020 Earnings Report
Disney's Q4 2020 earnings were impacted by COVID-19, with significant losses in Parks, Experiences, and Products segment, offset by growth in the Direct-to-Consumer business, particularly Disney+ subscriptions.
Key Takeaways
Disney reported a loss per share of $0.39 for the fourth quarter of fiscal year 2020, compared to an income of $0.43 in the prior-year quarter. Revenues decreased by 23% to $14.71 billion. The COVID-19 pandemic significantly impacted the Parks, Experiences, and Products segment, while the Direct-to-Consumer business, led by Disney+, showed strong growth.
Diluted EPS from continuing operations was a loss of $0.39, compared to income of $0.43 in the prior-year quarter.
Revenues decreased by 23% to $14.71 billion, primarily due to the impact of COVID-19 on Parks, Experiences, and Products.
Disney+ had more than 73 million paid subscribers as of the end of the fourth quarter.
The most significant adverse impact from COVID-19 was approximately $2.4 billion on operating income at the Parks, Experiences and Products segment.
Forward Guidance
The company did not provide specific financial guidance for future periods.
Positive Outlook
- Continued growth in the direct-to-consumer business, particularly Disney+.
- Resumption of some film and television production.
- Reopening of parks and resorts, albeit at reduced capacity.
- Potential for deferred sports programming to boost future advertising revenue.
- Cost-saving measures implemented in response to COVID-19.
Challenges Ahead
- Ongoing impact of COVID-19 on Parks, Experiences, and Products.
- Uncertainty regarding the timing and extent of park reopenings and capacity restrictions.
- Potential for additional costs related to safety measures and government regulations.
- Continued disruption in the production and availability of content.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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