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The Walt Disney Company released their Fourth Quarter financial statement this afternoon. Read on for details.
The Walt Disney Company held their 4th quarter earnings call today at 4:30 p.m. EST on November 12, 2020. Here’s the news concerning earnings and Disney+.
Direct to Consumer
Much like he did in the third quarter, Chapek highlighted the better than expected performance of Disney Plus, which celebrated its one year anniversary this week.
The Direct to Consumer and International sector of the company boasted a 41% increase in revenue this quarter to 4.9 billion dollars.
Disney Plus now boasts 73 million subscribers. ESPN plus has over 10 million paid subscribers. Hulu counts 36.6 million subscribers.
The introduction of a bundled package of ESPN Plus, Disney Plus and Hulu saw gains in the total number of subscribers, but reduced the per subscriber income.
The bundled subscriber drop was partially offset by an increase in product price of Hulu and Disney Plus.
Parks, Experiences and Products
Indeed, the success of the direct to consumer sector helped offset the losses in Parks, Experiences and Products.
With California Parks still shuttered, Cruise ships still docked and lower operating capacity in the Florida Parks and resorts meant big losses in this sector of the business.
Revenues for the fourth quarter decreased by 61% to 2.6 billion dollars.
Disney estimates the total loss for this segment in the fourth quarter to be around 2.4 billion dollars.
Looking Ahead
Chapek stated during the question and answer portion of the call that initially the Florida and Paris parks were capped at 25% capacity.
He went on to say that Disney engineering has figured out that they can increase capacity at the parks in Florida while maintaing CDC guidelines for social distancing.
So, expect to see a further increase in crowds to offset the losses from the closed parks and docked cruise line.
What do you think about Disney’s financial report? Any surprises? Let us know in the comments on Facebook and in our Facebook group.
-Rebecca W Davis
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