Disney estimates losses to be 'as much as $1.4 billion' as the coronavirus pandemic leaves the company’s theme parks, resorts and cruise ships shuttered.
In its quarterly earnings call with investors on Tuesday afternoon, home-bound Disney executives offered sobering assessments of the impact of the coronavirus outbreak on the multinational entertainment company's businesses. With closures of its theme parks, resorts and cruise ships, a shuttered movie business and declining television ad revenue, the company estimates losses to be,"as much as $1.4 billion" in the second quarter of 2020.
As the nation's largest media conglomerate, Disney's brands include Pixar, Marvel, Star Wars, as well as 21st Century Fox, ABC and ESPN. Disney also controls Hulu and launched its new streaming service, Disney+, last November. During the call, Disney CFO Christine McCarthy announced the Board's decision to forgo paying a cash dividend for the first half of fiscal 2020, saving the company about $1.6 billion in cash."It makes sense," says Hodulik. Since Disney furloughed more than 100,000 employees,"there's no reason why the shareholders shouldn't have to share in some of the pain," he says.
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