US entertainment giant Walt Disney is one of many companies that have been hit hard by the coronavirus pandemic. The top amusement firm, known for its theme parks and cruise lines, has reported its first annual loss in 40 years.
The company's fiscal fourth-quarter losses reached an impressive 39 cents per share, or $710 million. In comparison, in the same period a year earlier, its net income totaled $777 million, or 43 cents per share. The last time Walt Disney incurred losses was April 2001. However, it did not experience a decline in quarterly returns even during the global financial crisis.
This year turned out to be an unpleasant exception to Disney's successful history. The entertainment giant wrapped up its fiscal year with a loss of $2.832 billion, or $1.57 per share. According to FactSet, the company has not reported an annual loss since 1980. "It's been a year unlike any other in our lifetimes, and certainly in the history of the Walt Disney Co", CEO Bob Chapek said.
The only positive news was an earnings report provided by Disney's media networks division, which includes National Geographic and ESPN. Its revenue rose by 11% to $7.213 billion. The number of users subscribed to Disney+ streaming service grew to 73.7 million. However, since the beginning of this year, the company's market capitalization has decreased by 6.9% and now stands at $249 billion.
