The actors in the paradise do n’t wear masks, but you have to.
On May 5, Disney released its second fiscal quarter report as of March 28 this year. The losses caused by the epidemic are already obvious-places such as paradise, cruise ships, surrounding shops, and movie theaters all rely on people to generate income from offline activities. These Disney businesses naturally suffer heavy losses due to the social isolation policy of the global government.
In the quarter, the Disney theme park, experience and consumer products sector lost $ 1 billion. Compared with the same period last year, profits fell by about 58%. In previous years, Disney ’s park business has been stable. Although there is no big growth, it is Disney ’s pillar business. Last year, it contributed about 37% of Disney ’s revenue.
However, due to the gradual control of the epidemic in China, the Disneyland business has seen hope for recovery. Disney CEO Bob Chapek said that Shanghai Disneyland will be reopened in stages on May 11th, will implement a limit on the number of visitors, and will force visitors to wear masks and check the temperature before entering the venue, although performers such as Snow White will not wear masks. But it will keep a safe distance from tourists.
Shanghai Disneyland usually has 80,000 daily visitors, but due to local government restrictions, it can only operate at 30% capacity, which is 24,000. Chapek said that the park ’s initial opening operation will be below the capacity limit and will be raised to the 30% limit in the next few weeks.
The highlight in Q2 ’s earnings report is that Disney ’s youngest business, streaming media service Disney +, has only been online for half a year, but it seems to be the most growth business at present. The company said that because governments in various countries have implemented anti-epidemic home isolation, which has driven the number of subscribers to streaming services, Disney + has received 54.5 million subscriptions by May 4.
Previously, Disney did not expect to increase the number of global users to 60 million to 90 million by the end of 2024. The epidemic clearly accelerated this process significantly.
Benefiting from this, Disney ’s “Direct-to-Consumer & International” revenue surged to US $ 4.12 billion, an annual increase of more than 100%. However, the department has not been profitable. Due to the high cost of early promotion of Disney +, this department still lost $ 812 million in the quarter.
Disney + hits the market very cleverly and lucky. It seems to be Disney’s “pressure valve” during the epidemic. Reed Hastings, CEO of its competitor NetflixHastings) also praised Disney + on his company ’s recent earnings conference call, “I have never seen a new entrant learn so well and master the rules of the game in this industry.”
However, Wall Street is still concerned that Disney + ’s customer churn rate will gradually increase in the future. MoffettNathanson analyst Michael Nathanson downgraded Disney stock to “neutral” because more streaming service providers in the United States have recently launched discount strategies and the lack of new original content may also cause users tired.
Last year, Disney ’s total global box office exceeded 11.1 billion US dollars, becoming the first company in film history to exceed 10 billion US dollars. But this year, both the highly anticipated live-action movies “Mulan” and “Black Widow” were forced to be postponed. The revenue of the Q2 film and television production department was US $ 2.54 billion. Although it was an increase from US $ 2.13 billion a year ago, it was lower than the analyst’s average expectation of US $ 2.62 billion.
Overall, Q2 Disney ’s total revenue was US $ 18 billion, up 21% year-on-year; net profit was US $ 475 million, down 91% year-on-year. After the release of the financial report, Disney’s stock price was 98.95 US dollars, a drop of 2.09%.
Source of title map: visualhunt