Disney losses $5 billion amid the coronavirus pandemic
On Tuesday, Walt Disney Co (DIS.N) reported a quarterly loss worth $5 billion due to the coronavirus outbreak that has paralyzed its theme parks, live productions, cruise line, movie theaters, and sporting events worldwide.
Disney’s shares initially dropped by 2% in after-hours trading but ended the extended session by 4.3% after the announcement of the “Mulan” live-action film. Disney’s stocks were down by 19% this year while the broader S&P 500 index (SPX) was up 2%.
The mass media company said that the coronavirus pandemic and shifting media habits wiped out its operating profit worth $3.5 billion in the parks division.
“The majority of businesses worldwide have experienced unprecedented disruption as a result of the pandemic. Most of our businesses were shut down, and this had a huge impact on us,” Disney’s Chief Executive Officer Bob Chapek told analysts.
He added, “What we plan to do is invest even more in our content in order to keep that machine cranked and going.”