Disney's Parks Division Takes $3.5 Billion Quarterly Hit

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Disney's Parks Division Takes $3.5 Billion Quarterly Hit
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Disney now has more than 100 million paid subscribers across its direct-to-consumer portfolio

As Disney's legacy businesses continued to be hammered by the coronavirus pandemic, CEO Bob Chapek laid out a path forward for the company. on Disney+ for an additional fee and would push more aggressively into streaming with a new global general interest service. The news, which came minutes after Disney disclosed a 94 percent drop in its earnings per share during the spring quarter, impressed investors, who sent the stock up 5 percent during after-hours trading.

Disney's Parks, Experiences and Products business saw the biggest impact during the period, taking an approximately $3.5 billion hit due to closures. Walt Disney World reopened in July but the impact of that move won’t be known until Disney’s fiscal fourth quarter results are released later this year.

Studio revenues grew 18 percent year-over-year to $2.5 billion during the quarter and operating income dropped 8 percent to $466 million.

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