New Disney SEO Bob Chapek bravely presented the company’s first earnings report since he took over the position this quarter. As anyone could imagine, the financial effects of the coronavirus pandemic have been devastating.
“We are confident in our ability to withstand this disruption and emerge from it in a strong position”
Disney SEO Bob Chapek
Walt Disney Co. closed all parks, retail stores, and halted movie production during the COVID-19 pandemic and has seen profits sink by 90% in the second quarter. The company lost over $1 billion in profits in its theme park division alone and its direct-to-consumer segment will report an operating loss of more than $1 billion in the third quarter.
Robert Iger, the former chief executive of Disney, is now the executive chairman of the company. He is also confident in Disney’s ability to bounce back after the threat of coronavirus has passed. Iger held the position of CEO at Disney for the last 15 years.
Disney’s Chief Financial Officer Christine McCarthy said the company will not pay a semiannual dividend in July, which will save about $1.6 billion. So far, Disney stock has dropped more than 30% this year.
Streaming Saves the Day
Since the Walt Disney Co. has its largest segments centered around activities, it has been hit especially hard by the pandemic lockdowns. On par with the travel industry, Disney has suffered tremendous losses by closing theme parks and stores, canceling live sporting events and cruises and shutting down movie production.
Disney has earned some income with its streaming services, which is the only segment that has seen steady gains since January. This summer Disney+ will expand the subscription service to serve other countries around the world.