The Walt Disney Company has just released its earnings report for the first quarter of 2021, recapping October, November and December 2020. The company is reporting strong revenue, primarily growth credited to DTC services.
“We believe that the strategic actions we are taking to transform our company will fuel our growth and increase shareholder value, as demonstrated by the incredible advances we have made in our DTC business, reaching more than 146 million paid subscriptions to our streaming services at the end of the quarter, ”said Bob Chapek, CEO of The Walt Disney Company. “We are confident that, with our robust channel of exceptional, high-quality content and the upcoming launch of our new international general entertainment offering under the Star brand, we are well positioned to achieve even greater success in the future.”
Disney Parks, Experiences and Products revenues for the quarter decreased 53% to $ 3.6 billion, and segment operating results decreased $ 2.6 billion to a loss of $ 119 million. The lower operating results for the quarter are due to reductions in national and international parks and in the experience business.
Domestic park revenue fell 70%, international parks fell 60%. Consumer products, which are now part of the division, are sustaining park losses, so the losses were only $ 119 million. The losses recorded by theme parks alone are more than $ 1 billion.
As a result of COVID-19, Disneyland Resort was closed and Disney Cruise Line business was suspended in the current quarter. Disneyland Paris closed on October 30, 2020 and Hong Kong Disneyland Resort closed on December 2, 2020. Walt Disney World Resort and Shanghai Disney Resort were opened in the current quarter. Parks and resorts open during the quarter operated at significantly reduced capacities.
Disney estimates that the total net adverse impact of COVID-19 on the segment’s operating revenue for the quarter was approximately $ 2.6 billion.