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#Disney Q2 profit sinks on pandemic woes

#Disney Q2 profit sinks on pandemic woes
2036
Wednesday, 06 May, 2020, 11:05

The House of Mouse is struggling amid the coronavirus pandemic. Disney reported a steep decline in profit as many segments of its media and entertainment offerings ground to a standstill.

Its second quarter profit dropped 91% to $475 million, down from $5.4 billion a year earlier. Overall, the company said costs related to COVID-19 cut Disney’s pretax profit by $1.4 billion.
One bright spot was its Disney Plus streaming service, which launched in November. As of May 4, the company said Disney Plus had 54.5 million subscribers. The service contributed to an almost $3 billion revenue increase for Disney's direct-to-consumer and international business. Overall revenue rose 21 percent to $18.01 billion, just short of the $18.06 billion analysts expected.
Disney shares fell roughly 2% in after-market trading.