The impact of the pandemic on Disney’s various businesses

Despite Disney’s successful ventures in the streaming market, they have been unable to offset the losses incurred due to the COVID-19 pandemic affecting their physical business operations. The closure of Disneyland and Disney World along with the postponement of movie releases has led to significant setbacks for the media giant, as evident from their recently released Q2 earnings report.

Disney’s Q2 report reveals a staggering 90% decline in overall profits, resulting in an estimated loss of around $1 billion in potential earnings. The profits for Q2 stand at approximately $460 million, with shares trading at just 60 cents per share. This marks a $1.01 decrease per share compared to Q2 of the previous year. Analysts had projected shares to trade at around 90 cents each, but the widespread closures and disruptions caused by the pandemic globally have impacted Disney’s financial performance significantly.

Despite the challenging circumstances, Bob Chapek, who recently assumed the role of Disney’s CEO from Robert Iger, remains optimistic about the company’s ability to navigate through the pandemic successfully. Chapek expressed confidence in Disney’s resilience by stating, “While the COVID-19 pandemic has had a notable financial impact on several of our businesses, we believe in our capacity to endure this disruption and emerge stronger.”

Robert Iger, currently serving as the executive chairman, shared similar sentiments by stating, “Having led this company through various challenging times over the past 15 years, I am confident in our ability to overcome this difficult period and make a successful recovery.”