Disney Q4 2020 Earnings Report
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.
Disney
Disney
Disney Revenue by 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.
- Adverse impact on advertising sales at Media Networks and Direct-to-Consumer & International.
Revenue & Expenses
Visualization of income flow from segment revenue to net income